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Stocks Fade, Close Mainly Lower; Microsoft Tumbles But Chevron Rallies

Stock indexes closed mainly lower Monday, ending near session lows as enthusiasm over the tax-cut bill wore off in afternoon trading.

X The Dow Jones industrial average added  0.2% and climbed to a record high earlier in the day.

The most significant move among the 30 Dow components belonged to Chevron (CVX), which broke out of a flat base, clearing a 120.99 buy point in above-average volume. But Microsoft (MSFT) got swept up in the technology-sector selling, and shares slid 4% to nearly meet the 50-day moving average.

Software, semiconductor, fiber-optic and other technology industry groups were in the bottom of Monday's market performance. The broad weakness in tech stocks forced the Nasdaq composite to a loss of 1.1%. The composite, which has had a stellar 2017 with a gain of more than 25%, seems to be coming under profit-taking. The S&P 500 fell 0.3% and also reached a new high before gains evaporated.

Retail and transportation carried the market's upside. Department stores, discount chains, restaurants, apparel shops, air freight and railroads climbed more than 1.5%. Some groups that are affected by provisions in the tax legislation made big moves.

While techs were under siege, breakouts occurred in a number of industries. Financials were strong, where two investment management houses topped buy points.

Waddell & Reed (WDR) broke out of an irregular base with a 21.30 buy point but closed just below the buy point. LPL Financial (LPLA) crossed above the 54.02 buy point of a flat base in heavy volume.

Industrial stocks made a good showing too.

Steel Dynamics (STLD) broke out of a long saucer pattern, clearing the 39.85 buy point. It closed below the entry, but volume was double its usual pace. South Korea-based Posco (PKX) broke out of a flat base, rising above a 77.86 buy point in active trading.

Trinity Industries (TRN) — a maker of railcars, barges and other transportation equipment — cleared the 36.07 buy point of a cup-shaped base.

Quanta Services (PWR) cleared a flat base with a 38.45 buy point in heavy trading.

Consumer stocks continue to assert leadership, and it's not just retailers.

Fashion brand Ralph Lauren (RL) rose past the 97.30 buy point of a cup with handle.  But the handle has a wedging look, which makes it weaker from a chart perspective.

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