Dow Jones futures will begin trading on Sunday night, along with S&P 500 futures and Nasdaq futures. apple, oracle, adobe (adobe) Big news awaits tesla (TSLA) stock, Roku, Shopify is a major Cathie Wood Holdings close to a buy point.
The stock market rally had a tough week, with all major indexes falling below their 50-day lines and Friday’s rebound stalled. Market breadth has weakened significantly.
Investors should be cautious about new purchases as the uptrend is under pressure. But that could change soon.
Next week’s major events
apple (AAPL) is scheduled to unveil the iPhone 15 and other products on Tuesday, and AAPL stock has plunged in the last week on concerns about China’s iPhone.
Oracle (ORCL) will report earnings on Monday night, and Adobe will provide insights on cloud computing and artificial intelligence later on Thursday. Both companies are doing well, with the software sector doing much better than the chip and hardware technology sector.
lenner (Len) also reported on Thursday night. Housing stocks had a very strong year in 2023, but have recently been in trouble due to high mortgage rates.
The Labor Department will release its August CPI inflation report early Wednesday.
Dow Jones futures today
Dow Jones futures will open at 6pm ET, along with S&P 500 futures and Nasdaq 100 futures.
Please note that overnight trades such as Dow futures do not necessarily translate into actual trades in the next regular stock market.
stock market rise
Stock market gains have slowed, with all major indexes falling below their 50-day moving averages this week.
The Dow Jones Industrial Average fell 0.75% in stock market trading last week. The S&P 500 index fell 1.3%. The Nasdaq Composite fell 1.9%. The small-cap Russell 2000 fell 3.6%.
Apple stock has fallen nearly 6% for the week, falling below its 50-day line. China is reportedly expanding a government ban on iPhones in the workplace, days after Huawei launched a 5G phone with a chip banned in the United States. Apple will announce the iPhone 15 on Tuesday, but the price is expected to be even higher.
The 10-year Treasury yield rose 8 basis points to 4.26%. For the week, the 10-year Treasury yield hit 4.31%, far behind the 15-year high of 4.36% reached on Aug. 22.
Last week, U.S. crude oil futures rose 2.3% to $87.51 per barrel.
Among growth ETFs, Innovator IBD 50 ETF (FFTY) It fell 1.4% last week. iShares Enhanced Technology Software Sector ETF (IGV) rose 0.6% after strong gains over the past two weeks. Adobe is his No. 1 holding in IGV, and ORCL stock is No. 2. PATH stock also belongs to his IGV.
VanEck Vectors Semiconductor ETF (SMH) fell 3.7%.
ARK Innovation ETF (Arkku) rose 0.1% last week, while the ARK Genomics ETF (arcg) fell 4.5%. Tesla stock is the No. 1 holding among Ark Invest’s ETFs. Roku stock, UiPath, Shopify, DraftKings and Twilio are also among Cathie Wood’s Ark’s top 10 holdings.
SPDR S&P Metals & Mining ETF (XME) fell 3.3% last week. Global X US Infrastructure Development ETF (pave) gave up 3.7%. US Global Jets ETF (jets) fell 4.6%. SPDR S&P Home Builders ETF (XHB) fell 3.6%. Energy Select SPDR ETF (XLE) rose 1.4%, while the Healthcare Select Sector SPDR Fund (XLV) fell 1.1%. Industrial Select Sector SPDR Fund (XLI) fell 2.9%.
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Cathie Wood stock nearing buy point
Tesla stock fell on Friday, but rose 1.4% for the week to 248.50, bouncing between its 50-day and 21-day moving lines. The EV giant’s buy point is 299.29. A decisive move above the 50-day line would allow for early entry into TSLA stock, with investors using the Aug. 31 high of 261.18 as a concrete trigger.
Roku stock has acquired a new cup base with a buy point of 98.44 after finding support at the 50-day line in late August. Shares soared to $95.84 on Wednesday after Roku announced higher third-quarter sales and 10% headcount cuts. Roku stock’s gains slowed, but it still rose 2.1% for the week to 83.47. Roku may be starting to make some weird looking handles.
Shopify stock is on a cup-with-handle basis with a buy point of 67.60 on the weekly chart after falling 5.55% to 63.01. It will take another day for the handle to appear on the daily chart. Following news of the expanded partnership with SHOP, SHOP stock rose above its 50-day line on August 31st. Amazon.com (AMZN). On Friday, the stock closed below the gap-up low.
PASS stock soared 16.3% to 18.48 last week on the back of strong earnings and a stock buyback plan. UiPath stock is approaching a double-bottom buy point at 19.03, but it is viable from the downtrend line. After soaring over the past three weeks, PATH stock is worth a pause or a handle.
DKNG stock rose 7.5% to 31.85, rebounding from a 50-day loss. The online sports betting giant currently has a V-shaped base with a buy point of 34.49. DraftKings stock currently appears to be slightly extended from 50 days. A handle would be helpful here.
TWLO stock rose 0.1% this week to 65.48. According to MarketSmith analysis, Twilio has a 71.24 buy point due to consolidation following failed locations. TWLO stock’s relative strength line has improved slightly recently, but it has remained volatile for several months after a long decline.
Tesla’s profit margins are falling. Bulls expect a recovery even as prices continue to fall.
market rise analysis
Last week, the market bull run weakened significantly. On Tuesday, the Dow Jones and Russell 2000 fell below their 50-day lines, and the S&P 500 and eventually the Nasdaq also fell below that key level.
The market rally turned to an upward trend following pressure on Thursday.
The S&P 500 and Nasdaq tested intraday lows on the Aug. 29 follow-through day, but never closed below that level. That would have been a very bearish signal.
Friday’s rally quickly dissipated as the S&P 500 and Nasdaq hit resistance near their 50-day lines and the 10-year Treasury yield began erasing intraday losses.
The Russell 2000 is struggling to stay above 200 days as the market narrows.
The up/down lines on the Nasdaq and the New York Stock Exchange have been struggling since late July. After rising in late August, the A/D line fell again last week, sending the Nasdaq stock to a long-term low. This is not a healthy situation for a market rally.
Energy stocks are doing well as oil prices are at 2023 highs.Software is showing strength with the giants microsoft (MSFTMore) and salesforce.com (CRM) Flirting with buy signals. Adobe and Oracle’s earnings and commentary on AI will be key.
Most other sectors have struggled recently.
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what to do now
With market upside under pressure, investors should be cautious about new purchases, with the exception of the energy sector. The fact of the matter is that very few non-energy stocks have offered buying opportunities over the past week.
Investors may have had to reduce some of their holdings in recent days as they gave up profits or issued sell signals.
Still, many stocks are still set or on the verge of being set. So prepare your watchlist and stay engaged with the market.
With the S&P 500 and Nasdaq between support and resistance, any major moves likely won’t significantly change the market structure either way.
Next week will see the Apple iPhone event, Oracle and Adobe earnings results, and the August CPI inflation report among potentially market-moving events.
Read The Big Picture every day to stay on top of market direction and key stocks and sectors.
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