Breaking

Apr 09, 2021 2 mins, 15 secs
The stock market rally continued to strengthen, with the S&P 500 index and Dow Jones hitting record highs while the Nasdaq delivered a second straight strong weekly gain.

After weeks of wondering if a split market rally would survive, the Dow Jones and S&P 500 are at risk of becoming extended, raising the odds of a pullback.

Floor & Decor (FND), Square (SQ), JPMorgan Chase (JPM), Mosaic (MOS) and Apple (AAPL) supplier Skyworks Solutions (SWKS) are stocks in or near buy zones that offer some portfolio diversity amid a still-tricky market rally.

Remember that overnight action in Dow futures and elsewhere doesn't necessarily translate into actual trading in the next regular stock market session.

Join IBD experts as they analyze actionable stocks in the stock market rally on IBD Live.

The stock market rally had another strong week, with the major indexes closing on a high note.

The Dow Jones Industrial Average rose almost 2% in last week's stock market trading while the S&P 500 index climbed 2.7%, both hitting record highs.

Square stock is a notable holding for ARK Investments.

JPM stock has been trading at its 21-day line in tight action for several weeks.

Aggressive investors could buy JPMorgan stock now, trading above the bulk of recent action, with one huge caveat: JPMorgan earnings are on tap Wednesday.

Buying a stock just before earnings is highly risky unless you are using an earnings strategy.

Investors could buy MOS stock right here, though it's already had multiple 50-day/10-week line bounces after its most recent base.

SWKS stock rose just 0.55% last week to 188.73, pulling back after Monday's solid gain, much like the SMH ETF and many chip stocks.

As for Apple stock, the iPhone giant rallied 8.1% to 132.99 last week, running right through its 50-day line and providing a big boost to the Dow, S&P 500 and Nasdaq composite.

That, along with a weak RS line, gave little reason to be aggressive with Apple stock.

Over the past couple of weeks, the stock market rally has improved dramatically, with the Nasdaq shifting from a de facto correction to racing toward record highs.

The stock market rally is rewarding cautious optimism.

But otherwise the stock market rally is in good health.

There is a big difference between the Square stock chart and technical action of Teladoc (TDOC).

Buying a stock is easy, but purchasing the right stock without a proven strategy is incredibly hard.

Buying a stock is easy, but purchasing the right stock...

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