Seven Big 2023 Winners Holding Strong In New Year

S&P 500 Stocks Showing Strength as Market Rally Pulls Back #

Several S&P 500 stocks, including Advanced Micro Devices (AMD), Arista Networks (ANET), Booking Holdings (BKNG), Lululemon Athletica (LULU), Meta Platforms (META), Micron Technology (MU), and PulteGroup (PHM), are demonstrating resilience as the broader market rally cools off at the beginning of 2024.

These stocks are holding steady around their 21-day exponential moving average following strong performances in late 2023 and notable gains throughout the year. While many growth stocks have dipped below their 21-day lines to the 50-day average or lower, these stocks continue to maintain relative strength and have relative strength lines nearing or at 52-week highs.

Notably, META stock is featured on IBD Leaderboard, while ANET stock, Lululemon, Booking Holdings, and Meta Platforms are part of the IBD 50. Arista and LULU stock are included in the IBD Big Cap 20.

S&P 500 Stock Performance

AMD Stock

AMD stock experienced a 6% decline last week, ending at 138.58, as the chip sector faced a challenging week. However, the stock rebounded from its 21-day line on Friday. Earlier, AMD stock reached a 52-week high of 151.05 on Dec. 29, which positioned it within the 20%-25% profit-taking zone based on a cup-with-handle buy point of 122.11.

Arista Networks Stock

Arista stock dipped nearly 2% to 230.92 but held firm around the 21-day line. Having reached a peak of 240.68 on Dec. 26, Arista experienced slight profit-taking within the 20%-25% zone after rallying from a double-bottom base at the end of October, with a buy point of 198.46.

ANET stock formed a three-weeks-tight pattern, establishing a 230.92 add-on entry for existing shareholders, while the 10-week line is closing in rapidly.

S&P 500 Stock: Booking Holdings

Booking stock fell 3.9% to 3,408.14 last week but remained supported around the 21-day line over the last three sessions. Earlier, BKNG stock climbed 11.6% from its 3,207.32 handle buy point, reaching 3,580.62 on Dec. 27.

Lululemon Stock

LULU stock declined by nearly 4% last week, closing at 491.10 and ending a nine-week winning streak just slightly below the 21-day line.

Lululemon recently raised its Q4 guidance to align with consensus expectations.

The stock hit a record high of 516.39 on Dec. 29, which positioned it just above the 20%-25% profit-taking zone.

Meta Platforms Stock

Meta stock experienced a marginal 0.6% decrease, closing at 351.95, but rebounded from the 21-day line on Friday after testing the 50-day line. Previously, shares reached a record high of 361.90 on Dec. 28, representing a 10.9% increase since the 326.20 buy point.

Meta stock is currently displaying a three-weeks-tight pattern with a buy point at 361.90.

Micron Stock

MU stock encountered a 2.2% decline, closing at 83.45, but finished close to the weekly highs after rebounding from the 21-day line. Earlier, shares reached a 52-week high of 87.87, indicating slight profit-taking within the 20%-25% range after surpassing a flat-base buy point of 72.31 in early November. An alternate entry point emerged from a 10-week line bounce on Dec. 11.

S&P 500 Stock: PulteGroup

PHM stock retreated 1.7% to 101.48 last week, testing the 21-day line before rebounding on Friday. Shares peaked at a record high of 105.13 on Dec. 15, near the top of the 20%-25% profit-taking zone based on a cup-with-handle base. PHM stock broke out from an 84.25 buy point on Nov. 11, experiencing further gains from a shelf on Dec. 1.

Pulte stock currently displays a three-weeks-tight pattern with a buy point of 105.13.

However, if the market continues to decline, it is likely that most of these stocks will fall below their 21-day lines, despite their relative strength.