Dow Jones futures are set to open Sunday evening, along with S&P 500 futures and Nasdaq futures, as the stock market rally had a mixed week with negative trends. The Nasdaq fell below key moving averages, while Tesla and Nvidia are below their 10-week lines. The S&P 500 edged lower but found support around its 10-week line, while the Dow Jones rose slightly for the week. The market rally is at risk of falling into a correction, but some sectors like industrials, infrastructure, housing, and energy are holding up or gaining ground. Several stocks, including Arista Networks, Tenaris, Visa, SLB, Lennar, Martin Marietta, Delta Air Lines, Flowserve, Lululemon Athletica, and JPMorgan Chase, are setting up or holding up. On the other hand, Cardinal Health, Cava Group, Home Depot, StoneCo, and On Holding are trading around buy zones with earnings due this week. Investors are advised to think defensively in the current market environment. Tesla stock, Nvidia, and Martin Marietta are on IBD Leaderboard, while SLB stock is on SwingTrader. Tesla, SLB, Applied Materials, and Arista Networks stock are on the IBD Big Cap 20. Dow Jones futures will open at 6 p.m. ET on Sunday, but overnight action doesn’t necessarily translate into actual trading in the next regular stock market session. The stock market rally had a mixed week, with the Dow Jones rising 0.6%, the S&P 500 dipping 0.3%, and the Nasdaq composite slumping 1.9%. Market breadth is weakening on the Nasdaq, but much less so on the NYSE. Treasury yields and the U.S. dollar are rising, while copper prices are falling. Growth ETFs like the Innovator IBD 50 ETF and ARK Innovation ETF tumbled, while the Energy Select SPDR ETF and Health Care Select Sector SPDR Fund rose. Tesla stock declined 4.4% and fell below key support levels, while Nvidia stock had its worst weekly decline of the year. The stock market rally is on the verge of a correction, with the Nasdaq falling below key moving averages and the S&P 500 and Russell 2000 facing resistance. Investors should be increasingly defensive, especially with growth plays, and prepare for potential buying opportunities in the future.Dow Jones futures are set to open Sunday evening, along with S&P 500 futures and Nasdaq futures, as the stock market rally had a mixed week. The action was generally negative, with resurgent Treasury yields and mixed earnings weighing on growth.
The Nasdaq fell through the 50-day and 10-week moving averages during the week, with Tesla and Nvidia both below their 10-week lines. Nvidia’s decline is particularly significant as it is the leader of the AI-led market rally.
The S&P 500 edged lower but found support around its 10-week line on Friday, while the Dow Jones bucked the trend and rose slightly for the week.
While the market rally is in danger of falling into a correction, it has not reached that point yet. The uptrend is diverging, with tech stocks potentially in a correction while other sectors such as industrials, infrastructure, housing, and energy are holding up or gaining ground. Some retail, travel, medical, transportation, and financial names are also performing well.
Several stocks, including Arista Networks, Tenaris, Visa, SLB, Lennar, Martin Marietta, Delta Air Lines, Flowserve, Lululemon Athletica, and JPMorgan Chase, are setting up or holding up.
On the other hand, Cardinal Health, Cava Group, Home Depot, StoneCo, and On Holding are trading around buy zones with earnings due in the coming week.
Investors should be thinking defensively in the current market environment. Tesla stock, Nvidia, and Martin Marietta are on IBD Leaderboard, while SLB stock is on SwingTrader. Tesla, SLB, Applied Materials, and Arista Networks stock are on the IBD Big Cap 20. Flowserve was Friday’s IBD Stock Of The Day.
Dow Jones futures, along with S&P 500 futures and Nasdaq 100 futures, will open at 6 p.m. ET on Sunday. However, it’s important to note that overnight action in futures doesn’t necessarily translate into actual trading in the next regular stock market session.
The stock market rally had a mixed week, with the Dow Jones Industrial Average rising 0.6%, the S&P 500 index dipping 0.3%, and the Nasdaq composite slumping 1.9%. The small-cap Russell 2000 also gave up 1.65%.
Market breadth is weakening on the Nasdaq, but much less so on the NYSE. The 10-year Treasury yield jumped 11 basis points to 4.17%, close to the 2023 high of 4.21% set on August 4. The U.S. dollar is coming up to 2023 highs due to rising Treasury yields and ailing overseas economies.
U.S. crude oil futures climbed 0.45% to $83.19 a barrel, marking the seventh straight weekly gain. However, copper prices fell 3.4% and are down 5.2% in two weeks.
Among growth ETFs, the Innovator IBD 50 ETF tumbled 4.9% last week, while the iShares Expanded Tech-Software Sector ETF slid 1.7% and the VanEck Vectors Semiconductor ETF plunged 5.2%. The ARK Innovation ETF gave up 5.8% and the ARK Genomics ETF sold off 6.15%. The SPDR S&P Metals & Mining ETF slipped 1.4%, while the Global X U.S. Infrastructure Development ETF edged up 0.2%. The U.S. Global Jets ETF edged down 0.5%, and the SPDR S&P Homebuilders ETF dipped 0.7%. The Energy Select SPDR ETF popped 3.5%, and the Health Care Select Sector SPDR Fund rose 2.45%. The Industrial Select Sector SPDR Fund nudged 0.6% higher, while the Financial Select SPDR ETF rose a fraction and the SPDR S&P Regional Banking ETF slid 1.65%.
Tesla stock declined 4.4% last week, falling below its 50-day line and now 6.7% below its 10-week line. Nvidia fell below its 50-day line, extended losses, and finished down 8.6% for the week, now 5.1% below its 10-week line. Both stocks are experiencing significant sell signals.
The stock market rally is on the verge of a correction, with the Nasdaq falling through its 50-day and 10-week lines and the S&P 500 touching its 10-week line. The Dow Jones is holding its 21-day line. Many growth leaders, including Tesla and Nvidia, are below the 10-week line, while other sectors such as industrials, infrastructure, housing, and energy are holding up. The S&P 500 is holding the 50-day line, and many sectors look fine, but most aren’t booming either.
Investors should be increasingly defensive, especially with regards to growth plays. Overall and tech exposure should have been coming down in the past couple of weeks. It’s still possible that the market rally revives, especially if Treasury yields ease. Investors need to prepare for potential buying opportunities by building up watchlists and keeping an eye on stocks showing strong relative strength.
Please follow Ed Carson on Twitter at @IBD_ECarson for stock market updates and more.
How did the Technology sector ETF and ARK Innovation ETF perform compared to the Energy Select SPDR ETF and Health Care Select Sector SPDR Fund?
Chnology sector Select Sector ETF dropped 2.5% and the ARK Innovation ETF fell 8.1%. On the other hand, the Energy Select SPDR ETF and Health Care Select Sector SPDR Fund saw gains.
Tesla stock declined 4.4% last week and fell below key support levels, while Nvidia had its worst weekly decline of the year.
The stock market rally is on the verge of a correction, with the Nasdaq falling below key moving averages and the S&P 500 and Russell 2000 facing resistance. As a result, investors should be increasingly defensive, especially with growth plays, and prepare for potential buying opportunities in the future.
Dow Jones futures, along with S&P 500 futures and Nasdaq futures, will open Sunday evening. It’s important to note that overnight action in futures may not necessarily translate into actual trading in the next regular stock market session.
Overall, the stock market rally had a mixed week with negative trends, and investors should approach the market with caution and be prepared for potential market corrections in the near future.
It will be interesting to see how the market handles the tech downturn and if it can sustain the recent rally.