Dow Jones Rallies 460 Points As Stocks Rebound; Netflix At New High;

The Dow Jones Industrial Average rose over 400 points in today’s stock market and traded near its highs. Meanwhile, the Nasdaq composite led the market on the upside, while the Russell 2000 pared an earlier gain.

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Dow Jones In The Stock Market Today

At around 1:30 p.m. ET, the Nasdaq composite gained 1.5%. The Dow Jones traded up around 1.2%. The S&P 500 advanced 1.5%, while the Russell 2000 climbed 0.2%. Volume was running lower on the NYSE and on the Nasdaq vs. the same time on Monday.

Tuesday’s gains came after strong selling on Monday, with the major indexes closing down more than 1% each. While the market was downgraded to “market in correction” status last week, there’s still a lot to pay attention to. Mainly, investors want to monitor for the next follow-through day. This key signal confirms that a new uptrend is underway.

So far, Tuesday is on track to register as day one of an attempted rally. Day one begins when a major index closes up or finishes high in the day’s range.

At this time however, investors may consider initiating very small positions in certain sectors that are still performing well. It’s best to avoid sectors showing severe weakness. For more in depth trading strategy, join the IBD experts every morning on IBD Live as they analyze actionable stocks and trade ideas daily.

Netflix Hits New High

On Tuesday, industry groups leading the upside included the movie leisure group, home to  Netflix (NFLX) and AMC (AMC). Additionally, several transportation-related groups were outperforming.

Netflix soared nearly 5% in heavy volume to a new high. It’s now extended from a 593.39 buy point of a consolidation. The buy range topped out at 623.06. The streaming giant is rallying on the global success of its “Squid Game” series. Analysts expect Netflix stock to earn $2.55 a share on sales of $7.48 billion when it reports Q3 results on Oct. 19.

Meanwhile, the Energy Select Sector SPDR (XLE), a recent market outperformer, gained a modest 0.4% after paring earlier gains. Oil prices shot up 1.8% midday Monday, to above $79 a barrel. Oil and gas stock EOG Resources (EOG) was the latest among its kind to break out from a buy point.

Shares moved above the 88.09 entry of a cup base but slipped back below this area in afternoon trading. The oil and gas exploration industry group currently ranks No. 3 out of the 197 groups IBD measures, which reflects the group’s market leadership. The stock is also a leader of its group, according to Composite Rating. The firm holds the No. 2 spot in the group with a Rating of 99.

Elsewhere, financial stocks powered higher Tuesday, as the Financial Select SPDR ETF (XLF) rose over 2%….