Dow futures will open Sunday evening, along with S&P 500 futures and Nasdaq futures. The stock market rebound rebounded last week, with major indexes moving above a major resistance level.
It’s not a definitive victory, although it is close. Leading stocks and other indices point to a market rally that is much healthier than the major indices alone. While there are still plenty of market challenges, investors should gradually add exposure and prepare to dive even deeper.
Tesla (TSLA) stock, Arista Networks (Network), Energy Enphase (ENPH), Neurobiological Sciences (NBIX) And the pure storage (PSG) in or near areas of purchase. Tesla (TSLA) and ANET Stock is all about early entries, while Pure Storage apparently did on Friday. ENPH stock initially fell on Friday, but bounced back after holding above the trend line entrance. NBIX stock is also holding just above the trend line.
NBIX stock is up IBD Leaderboard. PSTG stock is running SwingTrader. TSLA, Arista Networks, Enphase Energy, and Pure Storage stock available at defect 50. ENPH and Arista stock are also on IBD Big Cap 20.
The video included in the article analyzed the market rally movement last week and analyzed Tesla, GlobalFoundries (GFS) and PSTG shares.
Dow jones futures contracts today
Dow Jones futures open at 6 p.m. ET on Sunday, along with S&P 500 futures and Nasdaq 100 futures.
stock market rise
The stock market rally extended its recent losses on Tuesday, but then rebounded to post solid weekly gains.
The Dow Jones Industrial Average rose 2.7% last week stock market trading. The S&P 500 rose 3.65%. The Nasdaq Composite Index jumped 4.1%. Small cap Russell 2000 is up just over 4%.
The 10-year Treasury yield rose 13 basis points to 3.32%, the sixth weekly advance and close to an 11-year high in June at 3.48%.
US crude oil futures hit their lowest levels since January for the week, but rebounded to close just 0.1% lower at $86.79 a barrel. Natural gas futures fell 9%.
between the Best ETFsThe Innovator IBD 50 ETF (fifty) rebounded 2.6% last week, while the Innovator IBD Breakout Opportunities ETF (fit) gained 2.55%. iShares Expanded Technology and Software Fund (ETF)IGV) jumped 5.6%. VanEck Vectors Semiconductor Corporation (SMH) rose by 4.35%.
SPDR S&P Metals & Mining ETF (XME) rose 6.1% last week. Global Infrastructure Development Fund X US (cradle) jumped 5.1%. US Global Gates Foundation (ETF)Planes) rose 5.2%. SPDR S&P Homebuilders ETF (XHB) rose 4.5%, even as Treasury yields rose. SPDR Specific Energy Fund (SPDR ETF)XLEGained 0.8% and Financial Select SPDR ETFXLF) added 4.5%. SPDR Healthcare Sector Selection Fund (XLV) rose by 4.4%.
stock to watch
Tesla stock rose 10.9% last week to 299.68, rebounding from the 50-day line to come back above the 200-day moving average. The size was anemia, however. Investors can buy TSLA shares here or just above the 300 level, with 314.74 as a semi-handle entry. The electric car giant is still far from official buying points.
Tesla has recovered from Covid restrictions and significantly expanded its production capacity. But competitors are also rising, with Chinese electric car makers in particular producing new volume models and significantly expanding their international presence. It’s going to be several interesting months in the EV space for sure.
ANET stock is up 6.1% over the past week to 124.11, bouncing back from the 10-week moving average and retracing the 200- and 21-day lines, despite weak volume. Arista Networks stock has a buy point handle of 132.97 from a double bottom base, but investors can get in early around current levels. Arista’s earnings and sales growth has accelerated over the past three quarters.
ENPH stock rose 9.5% to 305.70 last week. Stocks regained their 21-day streak on Tuesday, arguably offering an early entry on a short consolidation after a post-earnings rally to new highs. On Wednesday, Enphase stock was definitely doable, hitting new highs. On Friday, ENPH stock fell to 294.20 on the day on the back of an analyst downgrade, but rebounded from its lows after it didn’t undermine the trendline entry or hit the 21-day line.
The line relative forceAside from Friday’s drop, it soared to record highs, as Enphase stock topped the S&P 500 index.
NBIX stock is up 3.4% in the short week to 106.51, rebounding from its 10-week streak. Stocks liquidated a trendline entry point on Thursday, then held above that on Friday.
PSTG stock is up 3.9% at 30.30 for the week after testing the 50-day and 200-day lines. After the breakout failed in August, a new handle formed with a buy point at 31.62. But on Friday, stocks broke the downtrend of this handle and moved above the 21-day line, providing an early entry.
Market Rise Analysis
On Tuesday, it appeared that the stock market rally was in its final moments. Major indices started to miss the 50-day line after pulling back from the 200-day line in mid-August. The Nasdaq Composite fell from its lows in late July, but notably did not close below that area.
From there, the major averages rebounded.
On Friday, the small S&P 500 and Russell 2000 retraced the 50-day moving averages at the open, joined in the afternoon by the Nasdaq. The Dow Jones briefly got rid of the 50-day line, but closed just below that key level.
While the S&P 500 now has some space above the 50-day line, it may be too early to say that the overall market rally has decisively removed the major test.
One reason is that the giant stocks have been notable drawdowns for the Dow, S&P 500 and Nasdaq Composite Indices, masking the underlying upward movement.
The New York Stock Exchange’s forerunners crushed the losers by 5-1, while the Nasdaq winners beat the losers 5 to 2.
The S&P MidCap 400 streak regained 50 days on Thursday, then crossed 21 days on Friday.
Invesco S&P 500 Equal Weight Box (RSP), which does not increase the hypertrophic weight such as apple (AAPL), Microsoft (MSFT) and Tesla, it actually reclaimed the 50-day streak on Wednesday, added to the gains on Thursday, and then rose above the 21-day streak convincingly on Friday.
To be fair, the megacaps were pretty good on Friday. Tesla shares posted solid gains while Apple and Microsoft shares moved towards key levels.
Despite Friday’s decline in ENPH stocks, solar stocks remain the market leader, along with anti-pollution and various medicinal names. But tech stocks like ANET Stock and Pure Storage are starting to pop up, too.
Steel names go way back, while there is power scattered across retail and restaurants.
Oil and gas names settled with commodity prices after falling early in the week.
The market is still rising ‘under pressure’.
It won’t take much to get the indicators back below the 50-day line and revisit last week’s lows. On the upside, the 200-day moving average is still a big test ahead.
In addition to technical hurdles, the August CPI looms. The CPI inflation report likely won’t prevent the Fed from raising interest rates by 75 basis points for the third consecutive meeting on September 21st. But a worrying report could reinforce expectations that price increases will slow later in the year.
What are you doing now
The stock market rally has made real strides in the past three sessions. Investors are likely to add some exposure at this point.
If the Nasdaq clears the 50-day moving average decisively, investors will likely become more robust, with little room to run before the indices hit the 200-day mark.
Build your own watch lists. Throw in a wide net in general, but definitely focus your attention on actionable or potentially actionable names.
While looking for opportunities, be flexible. If the market rally falters again, prepare to switch to a more defensive mindset and portfolio again.
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