Dow Jones futures rose strongly Friday morning, along with S&P 500 futures and Nasdaq futures, with the dollar lower and Zscaler (ZS) And the DocuSign (DOCU) mobilize profits. The stock market rally eventually closed near session highs on Thursday, which constituted a major test of its 50-day moving average.
But while these five stocks lead the market, they are not independent of it. NBIX and Vertex stock were still doable at close, but broke off intraday highs as indices slipped off their best highs. Centene’s stock has fallen, and it may need more strength. BMRN stock showed a strong move, closing higher in the day’s range, but on light volume. AXNX stock only closed with a really strong lead, and this came after news of Milestone product axles.
On the negative side, apple (AAPL) fell a day after making higher progress on the new iPhone 14 and other products. Megacaps lags behind in the current market environment, all trading below the 200 day moving averages. Tesla (TSLA) is the only way to take a real step towards 200 days right now.
After the market closed, cybersecurity firm Zscaler and document software specialist DocuSign . reported Better than expected Quarterly results He gave powerful instructions. ZS stock popped overnight, while DOCU stock soared. Previous leaders are well below highs and nowhere near taking action, but the reports are a good sign for software inventory and IT spending.
Dow jones futures contracts today
Dow futures rose 0.7% against fair value. S&P 500 futures rose 0.7%. Nasdaq 100 futures jumped 1%. Futures suggest that the small S&P 500 and Russell 2000 will move above the 50-day moving averages at the open, with the Dow and Nasdaq below that key level.
A weak dollar, which has climbed to its highest levels for a long time, is giving a boost to futures contracts.
The 10-year Treasury yield fell 2 basis points to 3.27%.
Crude oil futures are up 2% and natural gas futures are up more than 2%. Copper prices rose 2%.
stock market rise
The stock market rally had a bull and bear session, selling near the open, bouncing back for solid gains, and falling back and forth before finally progressing with decent gains after Wednesday’s strong recovery.
Just before the market opened, Federal Reserve Chairman Jerome Powell reiterated that he was “deeply committed” to fighting inflation, reinforcing expectations for a third consecutive rate hike of 75 basis points on September 21. The prime rate is 75 basis points. Later, ECB sources hinted that another 75 basis points could come in October.
Meanwhile, initial jobless claims defied expectations, and fell for the fourth consecutive week, sending another signal to Fed Chairman Powell that labor markets remain too tight.
The Dow Jones Industrial Average and Nasdaq Composite Index rose 0.6% on Thursday stock market trading. The S&P 500 rose 0.7%. Small cap Russell 2000 advanced by 0.8%.
US crude oil prices rose 2% to $83.54 a barrel after hitting their lowest levels since January on Wednesday.
The 10-year Treasury yield rose 3 basis points to 3.29%.
between the Best ETFsThe Innovator IBD 50 ETF (fifty) by 1.5%, while the Innovator IBD Breakout Opportunities ETF)fit) gained 1%. iShares Expanded Technology and Software Fund (ETF)IGV) and VanEck Vectors Semiconductor ETF)SMH) rose 1.4%.
SPDR S&P Metals & Mining ETF (XME) rose 0.6%. SPDR Specific Energy Fund (SPDR ETF)XLE) advanced 0.4% and the Financial Select SPDR ETF (XLF) 1.8%. SPDR Healthcare Sector Selection Fund (XLV) gained 1.7%. CNC and Vertex stock are XLV components.
Apple stock fell 1% to 154.45 Thursday. Shares hit their lowest levels since late July. The line relative force It is now dropping rapidly after record highs as recently as August 17th. As the most valuable US listed company and a member of the Dow Jones, S&P 500 and Nasdaq Composite, if AAPL stock falls, it’s hard for the major indexes to make much headway. Other huge stocks are also struggling.
Apple and other big companies were generally higher on Friday morning.
Tesla stock is a partial exception to the malaise, rising nearly 2% to 289.26. It is now up 7% this week, rebounding from the 50-day moving average. But this week’s gains came in weak volume. TSLA stock remained below the 200-day slump. A decisive move above the 200-day line, perhaps beyond the 300 level or August 14 high at 314.64, will provide an early entry.
Germany is said to have asked Tesla to make changes to the autopilot, citing “abnormal situations”. Meanwhile, Tesla is looking to build a lithium processing facility in Texas, for state subsidies.
TSLA stock is up 1% before the opening.
Market Rise Analysis
The stock market rally shrugged off strong early losses, not ready to give up Wednesday’s big gains. Despite some intraday volatility, all major indices closed near session highs.
After appearing to hit resistance at their morning highs, the S&P 500 and Russell 2000 finished just below the 50 day moving averages. Keep in mind that the S&P 500 came within one point of the 200-day line on August 16th – with small capital Russell just above the level – indicating the top of the current rally. On September 2, the S&P 500 and Russell 2000 indexes touched the 50-day line and then severely reversed.
So the 50 day moving average is not just a line on the chart. A decisive move above this level would be a bullish signal. Note that the 21-day moving average is racing towards the 50-day moving average for all major indicators.
Futures indicate that the S&P 500 and Russell 2000 will open at least above the 50-day moving averages. But maintaining that level and decisively clearing that area is what ultimately matters.
Above these lines, a market rally may have little room to run, but the 200-day average will be the ultimate test.
Investors should follow the market primarily through major indices and leading stocks. In recent days, the leading stocks have looked better than the major indices.
But Neurocrine, Centene and Vertex emerged from highs as the market initially hit resistance, even with the Nasdaq, S&P 500 and Dow Jones closing near their best levels on Thursday. If the major indices head south again, most stocks will follow suit.
Solar and pollution control stocks are working well. As well as a variety of medical names from biotechnology, products/systems, and health insurance companies. Lithium plays hot, but the choppy graphs make it hard to work with.
A few technical names have been set up but overall no buy signals are flashing yet. But continued market strength could trigger the release of tech to buy points, along with stocks from a variety of sectors.
It’s okay if huge stocks like Apple aren’t driving an uptrend in the market, but it would be nice if some of them were actively involved.
What are you doing now
More stocks are flashing buy signals, at least intraday. So it’s understandable that investors are choosing to nibble on some of the new positions, aiming to get an early ticket on some of the big cycles.
Remember that as the major indicators approach their 50-day lines, taking a new position becomes more risky – unless and until the major indicators decisively break higher.
Futures contracts indicate that the S&P 500 will open above the 50-day line. This is a strong signal, but not the same as decisively liquidating this key level.
Until that happens, consider taking small trades, at least to start, and be prepared to take quick profits and cut losses mercilessly.
If you go through taking new positions until conditions show a clear improvement, there will be other buying opportunities if the market gains momentum. A large number of stocks are about to become viable or close to approaching.
So work on your watch lists. Stay alert and be smart.
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