Dow Jones futures open Sunday night, along with S&P 500 futures and Nasdaq futures.
The stock market rally showed strength and resilience last week. The major indexes jumped on Wednesday in a positive reaction to Fed chief Jerome Powell’s speech, with the S&P 500 retrieving its 200-day moving average. On Friday, the S&P 500 tested and held that key level for the second straight session, despite the heating jobs report.
Investors can gradually increase their exposure, but the 200-day line is still active. Don’t get too aggressive until there is a decisive compensation at that long-term level.
Dow Jones giant Boeing airplanes (father), the giant lithium SQM (SQM), Dexcom (DXCM), Cheniere Energy (LNG) and Invesco Solar ETF (NEW) are all nearby buy points. Boeing, Dexcom, SQM and TAN ETF shares — including first sun (FSLR), Enphase Energy (ENPH) and many other top names — doable now. LNG stock has a new code flat sole.
chip giant Taiwan Semiconductor (TSM) and Nvidia (NVDA) have surged over the past few weeks, closing above their 200-day moving average. Taiwan Semi and Nvidia shares back above the 200-day line will not provide a buying opportunity, but will be a positive sign for the tech world and the overall market recovery. Chips are almost always involved in the eventual uptrends of the market, due to market power and their vital role in so many industries.
Earnings season is finally cooling off, while the economic calendar is less tense next week. But on Sunday, OPEC+ will meet, with the oil group and its key allies deciding on crude production quotas to start the new year.
Dow Jones Futures Today
Dow Jones futures open at 6 p.m. ET on Sunday, along with S&P 500 futures and Nasdaq 100 futures.
Stock market recovers
The stock market rally has had a strong week. The indices’ gains ranged from modest to solid but found support and broke through a key resistance level.
The Dow Jones Industrial Average rose 0.2% last week stock market trading. The S&P 500 index rose 1.1%. Nasdaq composite rose 2.1%. Russell 2000 Small Cap Index 1.3%.
The 10-year Treasury yield fell 18 basis points to 3.51%, its lowest level since late September. The 10-year yield bounced on Friday with the strong jobs report but ended up closing low. a little more on that day
US crude futures rose 4.9% to $79.98 a barrel last week, but fell below $80 on Friday. Natural gas fell more than 14%.
VanEck Vectors Semiconductor ETF (SMH) rose 1.1% last week, but fell below the 200-day line on Friday. TSM and Nvidia stock are both key players. Taiwan Semi rose 0.1% for the week. Nvidia shares rose 3.7%.
SPDR S&P Metals & Mining ETF (XME) rose 4.4%% last week to its best level in nearly six months. US X Global Infrastructure Development ETF (PAY THE ROAD RED) increased by 1%. US Global Jets ETF (jet plane) ascension. 0.7%. SPDR S&P Homebuilders ETF (XHB) increased by 0.9%. Energy Select SPDR ETF (XLE) fell 1.7% and the Financial Select SPDR ETF (XLF) decreased by 1.7%. SPDR Foundation for healthcare sector (XLV) rose 1.9%, near a record high. DXCM stock is an XLV component.
Stocks near the buy point
Boeing shares rose 2.5% to 182.87 for the week. Boeing rose 4% on Friday, over a The Wall Street Journal report that unified airline (UAL) nearly bought “dozens” of 787 Dreamliner jets. BA stock just broke out of the 5% chase zone of 173.95 cup base buy point, but investors can consider the recent deletion of levels as an alternative entry point.
SQM stock jumped 7.8% to 99.85 last week, recovering from near the 200-day line and reclaiming the 50-day line. While the lithium giant has an official cup-with-handle buy point of 112.45, it might be safer to get in early around current levels.
DXCM stock rebounded from the 21-day line last week, breaking the downtrend of a short-term consolidation to offer an early entry. Shares closed up 5.5% to 118.11, still relatively close to the 21-day line, with the 10-week line racing to catch up. Dexcom stock currently has a flat base on the weekly chart with a buy point of 123.46, according to MarketSmith Analysis. That flat base can be thought of as the handle of a deep cup that dates back to early April.
LNG shares rose nearly 1% to 174.72, finding support at the 50-day moving average. The stock has been up for three weeks in a row, but on low volume, this isn’t huge. On the weekly chart, Cheniere Energy currently has a flat base with a buy point of 182.45, right after a failed chart. cup base with handle. LNG stock could enter an early trade above Thursday’s high of 178.12, which corresponds to some important recent trading levels.
The Invesco Solar ETF is in an 83.20 cup-with-handle buy range, up 1.5% to 83.76 for the week. FSLR and Enphase stocks were the clear leaders, but the group rallied once again. TAN is a bit less volatile than individual solar stocks but can still make big moves.
Analysis of market recovery
The stock market rally had an impressive week, though the Nasdaq’s slump was the only major gainer.
On Wednesday, Fed Chair Powell largely reiterated expectations of slower rate hikes but no swift end to tightening. But the major indexes jumped that day, with the S&P 500 reclaiming the 200-day line for the first time since early April.
A market-damaging sell-off won’t shock Friday with a compelling jobs report and big move on Wednesday. But the indexes closed mixed narrowly. The S&P 500 has cut losses and holds support at the 200-day line. The Russell 2000, also back above the 200-day line on Wednesday, briefly rebounded from Friday’s 200-day test to close higher
Nasdaq recovered from around the 50-day moving average midweek to hit a two-month high. The Dow Jones, leading the market rally, edged higher, hitting a seven-month high.
However, the S&P 500 has yet to break above the 200-day line definitively and is just above the descending top trendline.
At the end of March, the S&P 500 appeared to have definitively broken above its 200-day line. But Nasdaq hit resistance at the 200-day line, fell back and dragged other indexes lower.
Today, Nasdaq has a long way to go before hitting the 200-day average, but that will also be a big test. It’s another reason investors want to see shares of Taiwan Semiconductor and NVDA break above their 200-day line, even though TSM stock is already listed on the NYSE.
However, while some chip names are leading the way and others are setting in, semiconductors and technology in general are not leading the current market rally.
Industry, infrastructure, solar, financial and medical groups are among the well-performing.
What to do now
The stock market rally is continuing to go well, coming after a week full of Fed-related news.
But the uptrend is not clear, with the S&P 500 still a lot going on.
Investors can gradually increase their exposure here, although holding on to existing holdings remains a solid strategy. If this bull market ends up having a real effect, you’ll have plenty of time to fully invest.
In either case, be ready to scale if conditions change. Taking a fraction of the profits relatively quickly still makes a lot of sense.
When scanning for possible purchases, keep looking for early entries. With individual stocks, sectors and the overall market still prone to large swings, overbought often means buying near short-term tops.
Continue working on your watch list. Looking beyond the traditional tech growth names, the names still lag behind overall.
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