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Stock Rally At 100-Day Mark; Is There More To Come?


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Blue chips set a fast pace Friday, as the confirmed uptrend marked its 100th session. The Dow Jones industrial average rose 0.9%, while the Nasdaq and the S&P 500 added 0.7% each.

[ibd-display-video id=3079997 width=50 float=left autostart=true] The small-cap Russell 2000 tacked on 0.3%.

Volume was higher on the Nasdaq and preliminary data showed it slightly higher on the NYSE.

The stock market is closed Monday for Martin Luther King Jr. Day. Trading resumes Tuesday.

The Nasdaq lost its Dec. 29 distribution day because of cumulative price gains. This leaves the Nasdaq's count at zero and the S&P 500 at one.

To have so little distribution at the 100-session mark in the rally is a good sign.

IBD's Market Pulse pegged Aug. 22 as the confirmation of a resumed uptrend. Since then, the market has stayed in uptrend mode. Friday marked Day 100 in the confirmed rally.

An uptrend that goes that long - without a switch to either correction on pressure - is relatively rare. The length points to a market that is providing more tailwinds than headwinds.

During the 100 sessions, the S&P 500 rose 15%; the Nasdaq and the Russell 2000, 17% each; the Dow Jones industrial average, 19%; and Innovator IBD 50 fund, 20%.

The elite FANG stocks mostly outperformed the market. Amazon.com ( AMZN ) pushed 37% higher; Netflix ( NFLX ), 33%; and Alphabet ( GOOGL ), 23%. Apple ( AAPL ), which is often included as an extension of the FANGs, trailed with a 13% gain, and Facebook rose 7%.

Facebook was slammed 4.5% Friday on news that a change in its news feed could hurt earnings and revenue.

Among IBD's 197 industry groups, the top performers in the 100-session period were oil and gas drillers, up 70%; apparel retail, up 44%; and oil and gas field services, up 42%.

The price of light sweet crude rose 36% over the 100 sessions, potentially padding margins for oil stocks.

Breakouts on Friday included the  New York Times ( NYT ), Paycom Software (PAYC), medical stock Idexx Laboratories (IDXX) and Illinois Tool Works (ITW). Idexx and Illinois Tool had unimpressive volume.

Among companies reporting Q4 results Friday, JPMorgan Chase (JPM) posted one of the better gains: up 1.6% in volume 43% above average.

The IBD/TIPP Economic Optimism Index for January was released. The gauge rose to 55.1, up from 51.9.

View the General Market Indicators chart page here .

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.



This article appears in: Investing , Stocks
Referenced Symbols: AMZN , NFLX , GOOGL , AAPL , NYT


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