Dow Jones futures will open Sunday night along with S&P 500 futures and Nasdaq futures.
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Last week’s rally in the stock market receded, and the long-awaited rebound is in full swing. Orderly selling continues on the Nasdaq and S&P 500. Nvidia (NVDA), apple (AAPL) and meta platform (meta) Google’s parent company either held its ground or marched higher alphabet (Google) recovered to key levels by Friday’s close. Tesla (TSLA) has retreated modestly after a large recent rise.
But indicators such as the Dow Jones and Russell 2000 showed more damage.
MongoDB (MDBs), hubspot (hub), Chipotle Mexican Grill (CMG), shockwave medical (SWAV) and Dexcom (DXCM) has held up well and is trading close to the buy point.
MDB stocks, HubSpot, Chipotle and Shockwave are all trading closely among other bullish technical action. DXCM stock is trading right near the reference point.
On Friday night, DexCom raised its earnings outlook for fiscal 2025 on Investor Day.
Now that the market rally has receded, it’s time to watch the major stocks closely and see which hold up the best. Keep in mind that stocks may find support or bounce off key levels on any given day. super microcomputer (SMCI), and then lower.
NVDA stock continues to garner attention as a true chip and AI leader.in the meantime Advanced Micro Devices (AMD) and speculative play such as: C3.ai (AI) fell below the 21st line.
Apple shares have quietly hit all-time highs, and META stock is heading for a 16-month high.
Tesla, Nvidia, MongoDB, Meta Platforms, HUBS in stock IBD Leaderboard, has CMG stocks on its leaderboard watchlist. CMG shares are also listed on SwingTrader.tesla stock and hubspot IBD50.Tesla, Chipotle, HubSpot and MDB stocks IBD Big Cap 20.
The video embedded in this article explains the uptrend in the market and analyzes HubSpot. rockwell automation (Korea) and Google stock.
dow jones futures today
Dow Jones futures open at 6 p.m. ET along with S&P 500 and Nasdaq 100 futures.
Note that overnight trading such as Dow Futures does not necessarily translate into actual trading in the next regular stock market.
IBD experts analyze hot stocks during the stock market rally on IBD Live.
Stock market rise last week
Stock market gains ended a multi-week winning streak, with the Nasdaq slipping slightly while small-cap stocks struggled.
The Dow Jones Industrial Average fell 1.7% in last week’s stock market trading. The S&P 500 and Nasdaq Composite fell 1.4%. Small-cap Russell 2000 fell 2.95%.
The 10-year U.S. Treasury yield fell three basis points to 3.74%.
US crude futures fell 3.85% last week to $69.16 a barrel. Copper futures fell 2%, including a 2.1% drop on Friday. Adding to concerns over global demand, the US dollar also had a strong week.
ETFs
Among Growth ETFs, Innovator IBD 50 ETF (FFTY) fell 1.65% last week, while the Innovator IBD Breakout Opportunity ETF (game) fell 1.7%. iShares Augmented Technology Software Sector ETF (IGV) fell just over 3%, driven by HUBS shares. VanEck Vectors Semiconductor ETF (SMH) gave up 3.8%. Nvidia shares are his number one holding in SMH, with AMD shares also being a notable component.
A stock that reflects a more speculative story, the ARK Innovation ETF (Arkuk) fell 4.9% last week, while the ARK Genomics ETF (Argu) both fell 5.3% after seven weeks of gains. Tesla shares are the top holdings across Ark Invest ETFs.
SPDR S&P Metals & Mining ETF (XME) fell just over 2% last week. Global X US Infrastructure Development ETF (pave) fell 0.5%. US Global Jets ETF (Jets) fell 1.75% after three big gains in a week. SPDR S&P Homebuilders ETF (XHB) increased by 0.5%. Energy Select SPDR ETF (XLE) fell 4.3%, while the Healthcare Select Sector SPDR Fund (XLV) decreased by 0.2%. Industrial Select Sector SPDR Fund (XLI) fell 2.1% after a three-week boom.
Financial Select SPDR ETF (XLF) fell 2.5%, while the SPDR S&P Regional Bank ETF (KRE) fell 8.1%.
Top 5 Chinese stocks to watch right now
Stocks close to the purchase point
MongoDB shares rose 2.7% to 389.99 on an upside week in the open market. MDB shares are within a 3-week tight pattern, or high-tight flag with a buy point of 398.89. The line of relative strength is at a nearly 10-month high and has been rising sharply since early May. This reflects that the MDB is performing better than the S&P 500.
MDB shares surged 4.1% on Thursday as the database software company announced several AI announcements and an expanded Google Cloud partnership at Investor Day. This allowed for aggressive entries around 385 or 389. MongoDB shares rose marginally on Friday and held firm as several of Thursday’s winners sold.
HubSpot shares fell 1.4% to 512.21, still supporting the 21st line. HUBS stock has a buy point of 535.12 from a tight 4-week pattern. A break above Friday’s high of 522.20 could allow early entry.
Chipotle shares closed higher, but last week rose 0.5% to 2,043.68, continuing to hover around the 21-day and 10-week lines. MarketSmith’s analysis shows CMG stock has a tight 5-week pattern and is also currently on a flat base, with buy points both at 2,139.88. However, investors may use the move above Wednesday’s high of 2,092.51 as an early entry.
Shockwave stock has been volatile on the daily chart, but has a tough closing price on the weekly chart. The stock fell 0.6% to 292.63, ending four weeks of modest gains. SWAV shares have support on the 21-day and 10-week lines. Investors can still take advantage of the buy point 308.09 for cups with handles. The 300 level is a significant level and may act as an early entry.
Dexcom shares fell 2.6% last week to 126.75. However, DXCM shares ended a four-day losing streak on Friday and found support at the 21st line, holding the buy point at 126.44. The diabetes products giant is trying to clear that range as far back as early November.
Late Friday, Dexcom said it expects 2025 revenue to be between $4.6 billion and $5.1 billion. This is an increase of $600 million from the previous range. The company also raised some of its profit margin forecasts for 2025 slightly.
S&P 500 Giants Lead 5 Stocks Close to Buy in Market Reversal
nvidia stock
Nvidia fell 1.1% last week to 422.09, just below its all-time high to the 10-day line. A drop to the 21st line could be a buying opportunity.
AMD shares fell 8.4% to 110.01, breaking the 21-day line and dropping just above the 10-week line. The stock is down 17% from its 52-week intraday high of 132.83 on June 13, when AMD unveiled a new AI chip aimed at rivaling Nvidia’s offerings.
Meanwhile, AI shares plunged 25% to 33.39. C3.ai shares fell 10.8% on Friday, falling below the 21-day line and returning to the deep levels that cleared earlier this month. AI shares are still effectively doubling from their early May lows, but are down almost 32% from their 52-week high of 48.87 just a week ago.
tesla stock
Tesla shares fell 1.5 percent to 256.60 after reversing Tuesday’s nearly nine-month high of 276.99. This came amid three downgrades by analysts that week, mostly on valuations.
After posting a second major rally in 2023, including a record 13-day winning streak, Tesla stock will take a breather, especially amid a broader market decline. It is still growing above the 21-day moving average.
TSLA shares may have started moving toward a consolidation back in late September. Given the depth of integration and its recent strong run, it’s likely Tesla will use a steering wheel that has some length and depth.
apple stock, meta
Apple and meta stocks didn’t move as much as the market did in reaction. Both continued to find support from the rapidly rising 10-day line. AAPL shares climbed about 1% to new all-time highs. Meta shares rose 2.7% to a 16-month high.
Market forecast for the next 6 months
market rise analysis
Last week’s rally in the stock market rebounded. So far, the S&P 500, Nasdaq, and most major stocks have been in an orderly pullback, but the breadth remains problematic.
After an extended eight-week rally, the Nasdaq fell to near the 10-day line, but remained well below Friday’s low and did not break below Thursday’s low. The S&P 500 is just below the 10-day line. Firm stocks in Apple, Meta, NVIDIA and Tesla provided some support.
On Friday, the Dow Jones fell below the 21-day line and tested the 50-day line. The Russell 2000 also saw him drop over 21 days, approaching 200 days and reaching the high of the range so far.
The First Trust Nasdaq 100 Equal Weighted Index ETF (QQEW) fell 2.8% for the week, far worse than the Nasdaq 100’s 1.5% decline. QQEW fell to the 21st line.
Invesco S&P 500 Equal Weight ETF (RSP) fell 2.7%, below the 21st line and April highs. A 50-day line test isn’t too far off. RSP’s RS line continues to weaken, dropping to its worst level since late 2020. This shows how the RSP continues to underperform the S&P 500.
The ups and downs have weakened significantly over the past week. It’s natural for the losers to take the lead in market declines, but it would be nice if the forces other than the growth leaders were a little stronger.
Is the market rally almost over? It is possible. However, the Nasdaq is 6.5% above the 50-day line and the Nasdaq 100 is 7.7% above that line, and if it rises it will look like it’s going to be big again soon.
It would be helpful to see the Nasdaq and S&P 500 retreat to the 21st line over the course of a week or two. If that happens, the 50-day line will get even closer.
When the market is trending positively, mediocre and even laggard companies thrive. Setbacks are separating the true leaders, but it is an ongoing process. Today, some resilient stocks may start crumbling, while others that have taken some hits may rise. Google stock is an example of the latter. After breaking below the 21-day line on Wednesday and approaching the 10-week line on Thursday morning, GOOGL shares rebounded above the 21-day line.
Chip, software and megacap growth companies such as MongoDB and HubSpot remain market leaders along with home builders and other housing stocks. Medical products is an emerging field, and SWAV shares and his DexCom are entering the space. Some restaurants such as CMG Stock are also on the menu.
Timing the Market with IBD’s ETF Market Strategy
what to do now
The stock market rally appears to be in a healthy and normal rebound, with relatively modest losses. But it can get even more intense. And we don’t know how individual stocks and sectors will hold up.
Investors should generally remain steady while waiting for signs that the stock market downturn is over. Look for stocks that are adhering to key levels and showing improving relative strength.
If you feel the need to trade now, be prepared to withdraw from the trade immediately. Thursday’s market rally suggested some aggressive entries. MDB shares have held up for now, but several other stocks quickly turned to shallow or solid declines.
The current pullback may set the stage for numerous buying opportunities in the days and weeks to come. So now is the time to build your watchlist and get ready. Stay alert, watch the overall market movement and be ready to pounce to buy points.
Read “The Big Picture” daily to stay on top of market direction and key stocks and sectors.
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