Indexes Reverse Sharply But Move Off Lows In Stock Market Today – Investor's Business Daily

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The key market indexes moved off their session lows heading into the last hour of regular trade in the stock market today. The Dow Jones industrials led the downside as health care names weighed.

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The Dow Jones Industrial Average dropped 1%, the S&P 500 shed 0.6% and the Nasdaq fell 0.4% in afternoon trading. Small caps also sold off, with the Russell 2000 down 0.9%. Volume was tracking higher on the NYSE and Nasdaq vs. the same time Friday.

UnitedHealth Group (UNH) weighed on the Dow with a 4% drop in heavy volume. That marks its fifth decline in six sessions. The managed care provider also dragged Health Care Select Sector SPDR (XLV), which counts UnitedHealth as a top five holding. The ETF is working on the right side of a choppy base with a 96.16 buy point.

Among Dow stocks, another health care related name, drugstore chain Walgreens Boots Alliance (WBA), fell 3%. Pfizer (PFE) and Merck (MRK) gave up nearly 1% each.

Health care, automakers and security software makers were among the biggest sector losers in the stock market today. But fiber optics, homebuilders and energy stocks outperformed. A 0.5% rise in West Texas intermediate crude prices to $56.08 a barrel gave oil stocks a boost.

Software Stumbles In Stock Market Today

Over in the IBD 50, leading software names led the downside. Enterprise software maker Atlassian (TEAM), medical software firm Veeva Systems (VEEV) and cybersecurity play Fortinet (FTNT) lost more than 4% each.

Atlassian slid below a 107.30 buy point of a three-weeks-tight pattern. Veeva, which recently triggered the 20% profit-taking rule from a 101.49 double-bottom buy point, remains 12% extended from the entry. Fortinet, building the right side of a cup base with a 94.47 buy point, may complete a handle today. That would set up an 88.70 handle entry.

The overall weakness in software stocks hurt tech ETFs such as iShares Expanded Tech-Software Sector (IGV), which sank more than 2%. Fortinet, Adobe Systems (ADBE) (down 3%) and Paycom Software (PAYC) (down 2.6%) are among its holdings. IGV is 3% off its all-time high and just below a 206.76 buy point of a cup base.

Back to the IBD 50, flooring products maker Armstrong World Industries (AWI) and gym operator Planet Fitness (PLNT) were among the few stocks bucking the sell-off. Armstrong rose 2%, on track for a new closing high, while Planet Fitness climbed more than 1%, also a new closing high.

The Innovator IBD 50 ETF (FFTY) gave up 1.2% in the current stock market.

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