Dow futures will open Sunday evening, along with S&P 500 futures and Nasdaq futures.
X
The stock market rally showed strength and resilience last week. Major indices rose on Wednesday in a bullish reaction to Federal Reserve Chairman Jerome Powell’s speech, as the S&P 500 regained its 200-day moving average. On Friday, the S&P 500 tested and held this key level for the second straight session, despite the hot jobs report.
Investors may gradually increase exposure, but the 200-day streak still applies. Don’t be too aggressive until there is a critical clear for that long range level.
Dow Jones giant Boeing (BA), the lithium giant Square meters (Square meters), dexcom (DXCM), Cheniere Energy (liquefied natural gas) and Invesco Solar ETF (tan) are all close Buy points. Boeing, Dexcom, SQM and TAN ETF – which include First Solar (FSLR), Enphase inrgy (ENPH) and many other notable names – now actionable. LNG stocks contain Flat base.
Chip giants Taiwan Semiconductor (TSM) And the nvidia (NVDA) has risen strongly over the past several weeks, closing above the 200 day moving average. Taiwan Semi and Nvidia stock back above the 200-day lines will not provide buying opportunities, but it will be a positive sign for technology and the overall market recovery. Chips are almost always involved in recent bull market trends, due to their market weight and key role in many industries.
Enphase stock and DXCM in action IBD Leaderboard. The Library of Alexandria is in operation SwingTrader. ENPH stock is on file IBD 50. The TAN ETF was on Friday IBD stock today.
The video embedded in the article discussed market action over the past week and analyzed Dexcom, LNG stock, and TAN ETF.
Earnings season has finally eased, while the economic calendar will be less severe next week. But on Sunday, OPEC+ meets, as the oil cartel and key allies decide whether to cut crude production quotas again or stand by to start the new year.
Dow jones futures today
Dow futures open at 6 p.m. ET, along with S&P 500 futures and Nasdaq 100 futures.
Remember to work in overnight Dow Jones futures contracts and elsewhere that does not necessarily translate into actual trading in the next regular session Stock market session.
Join IBD experts as they analyze actionable shares in the bullish stock market on IBD Live
Stock market rise
The stock market rally had a strong week. The indices’ gains were modest to solid but found support and breached above key resistance.
The Dow Jones Industrial Average rose 0.2% in the past week Stock market trading. The S&P 500 rose 1.1%. The Nasdaq Composite Index jumped 2.1%. Small Capital Russell 2000 1.3%.
The 10-year Treasury yield fell 18 basis points to 3.51%, the lowest since late September. The 10-year earnings rebounded on Friday with the strong jobs report, but eventually closed slightly lower for the day
US crude oil futures rose 4.9% to $79.98 a barrel last week, but fell below $80 on Friday. Natural gas is down more than 14%.
Exchange Traded Funds
between the The best mutual fundsand the iShares Expanded Tech-Software Sector ETF (IGV) increased by 2%.
VanEck Vectors Semiconductor Corporation (SMH) rose 1.1% last week, but fell below the 200-day line on Friday. TSM and Nvidia stock are two major components. Quasi Taiwan shares rose 0.1% for the week. Nvidia stock rose 3.7%.
SPDR S&P Metals & Mining ETFs (XME) jumped 4.4%% last week to the best level in nearly six months. Global Infrastructure Development Fund X US (cradle) increased by 1%. US Global Gates Foundation ETF (Planes) went up. 0.7%. SPDR S&P Homebuilders ETF (XHB) an advance of 0.9%. Energy Defined Fund SPDR ETF (xle(by 1.7% and the Financial Select SPDR ETF)XLF) decreased by 1.7%. SPDR Health Care Sector Selection Fund (XLV) advanced 1.9%, near a record high. DXCM stock is a component of XLV.
Reflecting more speculative stories, the ARK Innovation ETF (ARK)ark(recovered 6% last week and the ARK Genomics ETF)ARKG) 4%.
Top five Chinese stocks to watch now
Stocks near buy points
Boeing shares rose 2.5 percent to 182.87 for the week. Boeing popped 4% on Friday, ON Wall Street Journal Report that United Airlines (UAL) is about to buy “dozens” of 787 Dreamliners. BA stock is just above its 5% chase zone of 173.95 cup base Point buying, but investors can treat the liquidation of recent levels as an alternative entry.
SQM shares rose 7.8% to 99.85 last week, bouncing back from near the 200-day line and regaining 50-days. While the lithium giant has an official buy point of 112.45 cups with a handle, early entry around current levels could be safer.
DXCM stock rebounded from the 21-day line last week, breaking through the short consolidation downtrend to make an early entry. Stocks closed up 5.5% at 118.11, still relatively close to the 21-day line, with their 10-week line to catch up. Dexcom stock is now flat on the weekly chart with 123.46 points Buy, according to MarketSmith Analysis. This flat base can be thought of as the handle of a deep cup that dates back to early April.
LNG stocks rose nearly 1% to 174.72, finding support at the 50-day line. Stocks have risen for three consecutive weeks, but on a small scale, which is not significant. On the weekly chart, Cheniere Energy now has a flat bottom with 182.45 buy points, immediately followed by failed Cup base with handle. LNG stock could make an early entry above Thursday’s high of 178.12, which corresponds to some recent key trading levels.
The Invesco Solar ETF is in a range of 83.20 cups with a buy point handle, rising 1.5% to 83.76 for the week. FSLR stocks and Enphase are the clear leaders, but the whole group is rebounding again. TAN is a bit less volatile than individual solar stocks but can still make big moves.
Market rally analysis
The stock market rally had an impressive week, although the lagging Nasdaq was the only big index to post solid gains.
On Wednesday, Fed Chair Powell largely reiterated expectations for a slower rate hike but there was no quick end to tightening. But the major indices jumped that day, with the S&P 500 regaining the 200-day line for the first time since early April.
The market sell-off wasn’t a shocker on Friday given the hot jobs report and the big move on Wednesday. However, the indices closed narrowly mixed. The S&P 500 trimmed losses and held the support at the 200-day line. The Russell 2000 Index, which also returned above the 200-day line on Wednesday, bounced quickly from a 200-day test on Friday to close higher.
The Nasdaq rebounded from its 50-day moving average in the middle of the week to reach a two-month high. The Dow Jones index, which led the market rally, rose to a seven-month high.
However, the S&P 500 has yet to decisively clear the 200-day line and is right on a downtrend line.
In late March, the S&P 500 looked decisively above 200 days. But the Nasdaq hit resistance at the 200-day line, pulling back and pulling the other indices lower.
Today, the Nasdaq has some distance before it reaches the 200 day average, but that will also be a big test. This is another reason why investors will want to see Taiwan Semiconductor and NVDA stock liquidate the 200-day lines, even though TSM stock is listed on the NYSE.
However, while some chip names have pioneered and others are in the making, semiconductors and technologies in general are not driving the current market rally.
Industrial, infrastructure, solar, financial and medical groups are among those doing well.
It’s time to market with IBD’s ETF Market Strategy
What are you doing now
The stock market rally continues to behave well, coming after a big week of news regarding the Federal Reserve.
But the upside is not clear, as the S&P 500 still plays a big role.
Investors can gradually add exposure here, though standing with existing holdings remains a solid strategy. If this market rally has real legs, you’ll have plenty of time to fully invest.
Either way, be prepared to expand should conditions change. Taking partial profits relatively quickly still makes sense.
When looking for potential buys, keep looking for early entries. With individual stocks, sectors, and the market in general still subject to significant swings, buying on excessive strength often means buying near a short-term high.
Keep working on your watchlists. Look beyond traditional tech growth names, which are generally still underdeveloped.
Read The Big Picture Every day to keep up with the market trend, stocks and leading sectors.
Please follow Ed Carson on Twitter at @employee For stock market updates and more.
You may also like:
Why simplify this IBD tool burntthe classroom for top stock
Best growth stocks to buy and monitor
IBD Digital: Unlock IBD blue-chip stock listings, tools and analytics today
