Dow futures: Market rally reaches major test; Here’s what to do now

Dow futures will open Sunday evening, along with S&P 500 futures and Nasdaq futures. The stock market rally had another strong week, as it moved into a major test.

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The pause in the market wouldn’t be surprising, and might be healthy, after solid price gains in generally light trading volumes over the past several weeks. Investors should be careful about adding more exposure.

Diversified oil giant ExxonMobil (XOM) generates potential close entries, where energy stocks take the lead again. Costco Wholesale (cost) he have cup base with handlealthough many of the major competitors will be reporting this next week. United Health (United nations) traded tightly inside a buy zone, creating another entry. apple (AAPL) is close to breaking through as AAPL stock outperforms other megacaps. Microsoft (MSFT) is approaching the 200-day line, which may provide an opportunity to start a position.

Starting China EV Lee Otto (LIEarnings reports before Monday’s open. LI stock was among the top electric vehicle stocks, outperforming giants BYD (BYDDF) And the Tesla (TSLA), but it needs to cross the 50-day line. BYD stock fell below the 50-day streak while Tesla is just below the 200-day streak.

UN stock is running IBD Leaderboard And it was Friday IBD stock today. MSFT is a share IBD long-term leader.

The video included in this article discusses the weekly market movement in depth, while analyzing Exxon Mobil, UnitedHealth and Apple stocks.

Dow jones futures contracts today

Dow Jones index futures open at 6 p.m. ET on Sunday, along with S&P 500 futures and Nasdaq 100 futures.

Remember to work overnight in Dow Jones futures contracts and anywhere else that does not necessarily translate into actual circulation in the next regular session Stock market session.

Join IBD experts as they analyze actionable stock market actionable shares on IBD Live

stock market rise

The stock market closed at weekly highs despite some reversals during the week.

The Dow Jones Industrial Average rose 2.9% last week stock market trading. The S&P 500 rose 3.25%. The Nasdaq Composite Index is up 3.1%. Small cap Russell 2000 jumped 5%.

The 10-year Treasury yield rose one basis point to 2.85%, but with some big moves during the week.

US crude oil futures rose 3.5% to $92.09 a barrel last week, despite the decline on Friday. Gasoline futures jumped 6.7%. Natural gas prices jumped 8.7% during the week.

ETFs

between the Best ETFsThe Innovator IBD 50 ETF (fifty) gained 2.3% last week, while the Innovator IBD Breakout Opportunities ETF (fit) rose 3.1%. iShares Expanded Technology and Software Fund (ETF)IGV) advanced by 3%, with MSFT ranking first in the IGV. VanEck Vectors Semiconductor Corporation (SMH) rose 0.7%, rebounding from the sharp losses that followed nvidia (NVDA) And the micron (mo) Warnings.

SPDR S&P Metals & Mining ETFs (XME) jumped 8.3% last week. ETF Global X US Infrastructure Development ETF (cradle) rose by 4.6%. US Global Gates Foundation (ETF)Planes) rose 3.5%. SPDR S&P Homebuilders ETF (XHB) is up 4%, its eighth consecutive weekly gain. Energy Select SPDR ETF (XLE) jumped 7.4%, with a hefty weight for the XLE stock in XLE. SPDR Financial Choice Fund (SPDR)XLF) rebounded 5.4%. SPDR Healthcare Sector Selection Fund (XLV) jumped 1.65%, with a huge UN stock holding.

Shares reflect more speculative stories, the ARK Innovation ETF (see you) up 3.25% last week and the ARK Genomics ETF (ARKG) 3.8%. Tesla stock is a major ownership across Ark Invest’s ETFs. Cathie Wood’s Ark also owns some shares of BYD.

Top 5 Chinese stocks to watch right now

Stocks near the points of purchase

XOM stock rose 6.3% to 93.99 last week, moving back above the 50-day line. The energy giant’s shares closed on a trend line from the early June peak. the official buy point at 105.67, but that would be well above the 50-day line. Trading volume was light last week and not much over the past month as Exxon stock rebounded. Earnings growth continues to boom.

COST stock is down 0.6% over the past week to 537.21. according to MarketSmith Analysis.

Keep in mind that the smaller competitor BJ’s sentence (BJ) Reports next Thursday. Walmart (WMT), which owns the Sam’s Club warehouse chain, is due for release Tuesday morning, with targeting (TGTWednesday’s report.

United Nations stock rose 1.6% to 543.70. The health insurance giant is still in the 518.80-point range for a cup with a handle, while still below the April 14 high. UnitedHealth stock did not form a tight three-week pattern, but rather just crossed its weekly movement limit. But investors can still use 545.84 as an alternative buying point.

Apple stock advanced 4.1% to 172.12 last week. This was the sixth straight weekly gain, but it all came in light volume. On the upside, the Relative force line Reached several new highs, reflecting the outperformance of AAPL stock against the S&P 500. Apple stock is heading towards 179.71 double bottom point purchase. Technically, stocks reach an entry point in a trend line. Ideally, an AAPL stock would form a handle.

MSFT stock rose 3.2% to 291.91, but unlike Apple it is still below the 200-day moving average. A significant move above the 200-day line could provide an opportunity to enter MSFT stock as a long-term leader. The RS streak is not far from a 2022 high, even with MSFT stock well below its record high in late November at 349.67.

Li Auto’s earnings

Wall Street expects a net loss of two cents per share on sales of $1.4 billion in the second quarter, according to FactSet. That’s versus a previous year’s loss of 1 cent on $780.4 million.

Li Auto has been profitable for the past three quarters, but the Covid shutdowns affected production and deliveries in the second quarter. Li Auto currently has only one model, the Li One Hybrid SUV.

But it has kicked off sales of the luxury L9 hybrid SUV, with deliveries to begin later this month. Pre-orders were strong, with Li Auto expecting to deliver the L9 10,000 or more in September.

LI stock fell 3.4% to 32.49 last week, creating more space against the 50-day line and extending a downtrend that started in late June, after a massive wave from early May. Stocks closed in the upper half of their weekly range. Li Auto stock will have a new base with a buy point of 41.59, if it starts building right side up. A strong move above the 50-day high could provide an early entry.

Tesla vs. BYD: EV giants are now jockeys

Tesla and BYD Stock

Tesla stock jumped 4.1% to 900.09 last week. This is back above the 200-day moving average, retracing the 40-week streak on Friday. A break above the 200 day line and the August 4 high at 940.82 would provide a strong entry for TSLA stock. The official point of purchase is 1,208.10.

BYD stock fell 0.2% last week to 36.69, and is trading tightly but below the 50-day streak. China EV & Batteries has a base with 43.71 points of purchase. A decisive move above 50 days would provide an early entry.

BYD is supplying Tesla Berlin with Blade batteries, according to some reports. The blade-powered Model Y should start rolling out in a few weeks. Meanwhile, BYD will begin delivering the Seal sedan, a much cheaper competitor to the Model 3, in the next few weeks. BYD also began delivering the Atto 3 in Australia within a few days, entering a new market as part of a massive international expansion.

Market Rise Analysis

The stock market rally saw some ugly reversals during the day, on Monday and Thursday, but ultimately made solid gains on the major indexes.

The Dow Jones, S&P 500 and Russell 2000 indexes decisively got rid of their highs in early June, joining the Nasdaq. Russell 2000 is just above the 200-day streak, with the S&P 500 and Dow Jones closing in. The Nasdaq has more work to do to get to that long-term level as it reaches the 13,000 level.

Crossing the 200-day line may be evidence that the current uptrend is more than a big bear market rally. A pause or pullback would not be surprising after a strong lead for the major indicators, largely due to poor trading volume. Friday’s bounce, an inside day for the S&P 500 and Nasdaq, came in very light volume.

It could be a pause or a modest pullback over several days or a few weeks depending, but the market will do what it will.

Energy stocks continue to look strong, but will rise or fall with core oil and natural gas prices.

A wide range of doctors are doing well. Chipmakers, lithium plays, some steel plays, transmissions, and more are showing positive action.

Time to Market with IBD’s ETF Market Strategy

What are you doing now

As Scott Bennett of Invest with Rules told IBD Live on Friday, investors don’t need to hit the brakes, but they may want to lighten the gas.

Be careful about increasing exposure in the very short term, as the market rally may extend and face another major resistance area. Partial profit taking is still a sound strategy and way to prevent increased exposure from new purchases.

However, some high-quality stocks continue to issue or set up buy signals. Investors should participate in this market and look for new opportunities. So keep building these watchlists.

Read The Big Picture Every day to stay in sync with the trend of the market, stocks and leading sectors.

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