The stock market closed mixed Tuesday, as a rebound faded in afternoon trading.
X The Nasdaq composite rose 0.2% and held up at the 50-day moving average, a test of support that will help determine whether the index can bounce back or sink deeper.
The S&P 500 and Dow Jones industrial average were nearly flat as indexes could not rebound much at all from Monday's losses.
Dow component McDonald's (MCD) fell nearly 2% as it burrowed deeper below its 50-day moving average. The stock's break below the 50-day line this week is troubling because it is the first significant drop below the line since the stock began a run to new highs in early April. The Accumulation/Distribution Rating is the wost-possible E, adding to its weak profile, and a weak restaurants industry group is not doing McDonald's any favors.
Small caps, however, continued to outperform. The Russell 2000 added 0.5% and made a new high for the second day in a row.
Hewlett Packard Enterprise (HPE) broke out above the 15.09 buy point of a flat base in heavy trading, though shares closed slightly below the entry. The company's fundamentals need repair. Hewlett-Packard has a lowly Composite Rating of 50 while the company's EPS have fallen six of the past seven quarters.
YY Inc. (YY) broke out of a cup-without-handle base, closing above the 83.10 buy point. Volume was about double the average, which gave the breakout more emphasis. The breakout was all the more impressive because of the way that Chinese internet stocks sold off Monday.
YY, a social media platform, was the best-performing stock in the IBD 50. Without the 9% gain, the IBD 50 might not have closed higher Tuesday, judging from the mixed performance on that screen.
Among other breakouts, Select Medical Holdings (SEM) cleared the 18.90 buy point of a base-on-base pattern, but the stock closed a few cents below the entry. Volume was about average. H&E Equipment Services (HEES) climbed above the 27.64 buy point of a cup without handle. Volume was about 40% more than normal.
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