Dow futures: Market rally split at tipping point; Tesla creates a new entry

Dow futures will open Sunday evening, along with S&P 500 futures and Nasdaq futures. Major indices and leading stocks had a negative week as the hawkish Federal Reserve and higher Treasury yields had a negative impact. The stock market rally is “under pressure”.




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Tesla stock had a negative external reversal week. But now it has a handle on the weekly chart after it rose sharply. while, apple (AAPL) drifts lower, providing more heft to its handle while still rolling tight. While Tesla (TSLA) and Apple stocks are doing relatively well, and most growth stocks aren’t.

In the healthiest parts of the market, gallon petroleum (CPE) trades tightly on the weekly chart despite his reputation as a “porcupine”. general dynamics (JD) is also tightly circulated as it crafts a new file flat base. Molina Health (Ministry of Health) has been trading tightly in a buying zone, while also finding major support this past week.

Investors should be careful about making new purchases in the current market week.

Tesla stock is running IBD Leaderboard. Tesla and CPE stocks are available in defect 50.

The video included in this article discusses mixed market actions and analyzes Callon Petroleum, General Dynamics and MOH stocks.

Dow jones futures contracts today

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

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.


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stock market rise

The stock market rally pulled back last week as the Nasdaq and Russell 2000 fell below the 50-day moving averages.

The Dow Jones Industrial Average fell 0.3% last week stock market trading, despite modest gains late in the week. The S&P 500 fell 1.3%. The Nasdaq fell 3.9%. Russell 2000 slipped 4.6%.

The 10-year Treasury yield jumped 34 basis points last week to 2.71%, hitting a three-year high, as the Federal Reserve signaled it would soon begin cutting its massive balance sheet as well as sharp interest rate increases. The Treasury yield curve is no longer inverted, with the two years up slightly to 2.52%.

US crude oil futures fell 1.2 percent last week to $98.26 a barrel.

ETFs

between the Best ETFsThe Innovator IBD 50 ETF (fifty(It is down 6.15% last week, while the IBD Innovative Breakout Opportunity Fund)fit) gave up nearly 2%. iShares Expanded Technology and Software Fund (ETF)IGV) fell 4.3%. VanEck Vectors Semiconductor Corporation (SMH) decreased by 7%.

Shares reflect more speculative stories, the ARK Innovation ETF (see you) is down 10.1% last week and the ARK Genomics ETF (ARKG) 9%. Tesla stock is the number one stock held via Ark Invest’s ETFs.

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SPDR S&P Metals & Mining ETF (XME) 1.7% last week. Global Infrastructure Development Fund X US (cradle) fell 3.8%. US Global Gates Foundation (ETF)Planes) down 7.3%. SPDR S&P Homebuilders ETF (XHB) fell 3.5%, continuing its losing streak. SPDR Specific Energy Fund (SPDR ETF)XLE) up 3.2% and the Financial Select SPDR ETF)XLF) decreased by 0.9%. SPDR Healthcare Sector Selection Fund (XLV) rose by 3.7%.


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Apple stock

Apple stock fell 2.5% to 169.98 last week, closing just below the 21-day streak and just above the 50-day and 10-week averages. This provides more depth to the handle’s buy point at 179.71. The Relative force line It has fallen slightly, but is still close to record highs. Reports of weak consumer electronics demand affected chip makers, including iPhone suppliers, but Apple shares themselves did better. The App Store and other services revenue is helping insulate the tech giant from shifts in hardware demand.

Tesla Stock

Tesla stock jumped Monday, setting record first-quarter deliveries and hitting a three-month high of 1,152.87 on Tuesday, essentially hitting resistance on entering the trend line. TSLA stock then reversed lower on Tuesday and ended down 5.4% at 1025.82 for the week, with both the upper and lower bounds above last week’s range. External negative reversals are a bearish move, but could be positive for the Tesla stock chart, by presenting a real pullback after a big rally in a few weeks. On the weekly chart, Tesla stock now owns cup with handle Buy point 1,152.97 according to MarketSmith Analysis. This handle needs an extra day to appear on the daily chart.

It could be argued that the Tesla stock could use a slightly longer and deeper handle. Reaching below the 21-day moving average and the 1000 level could destabilize a few vulnerable stockholders. More time will also allow the 10-week streak to somewhat catch up with TSLA stock.

Keep in mind that the Tesla stock is an anomaly. Very few stocks with triple-digit P/E ratios are still holding up well. Can Tesla continue to reverse, or is last week’s reversal the start of a bigger selloff? When you think of this last scenario as a possibility, you can see how a move under 1000 could shake a number of investors.

On the news front, Tesla Austin held a “Cyber ​​Rodeo” Thursday night as deliveries of the Model Y began. Berlin’s Tesla began limited deliveries in March. Factories should eventually give a big boost to Tesla’s production capacity, but production will likely pick up slowly.

Meanwhile, Tesla Shanghai’s factory has been closed since March 28, due to the city’s lockdown amid a spike in Covid cases there. It is unclear when the factory can reopen. Even if the site is allowed to reopen, the Covid outbreak and restrictions could affect suppliers.

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On Monday, the China Association of Automobile Manufacturers will release industry data for March EV and overall vehicle sales. This will include Tesla’s wholesale sales. It probably won’t show much effect from the Shanghai lockdown.


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Callon Stock

The CPE stock chart has a well-deserved reputation as a “porcupine”, with plenty of morning rallies fading out or turning negative. Callon’s stock was also not as big as many other power plays. But there are some positive signs. Stocks went from finding support at the 200-day line to the 50-day line and now the 21-day line.

Meanwhile, despite significant intraday volatility, CPE stock fell 0.8% last week to 61.94. You have now created a file Three tight weeks, made 66.48 entries. This narrow pattern is almost entirely in a five-month consolidation range, so investors can still use 65.55 as a trigger. buy point.

A large number of other energy stocks are creating or in buying areas, including integrated giants ExxonMobil (XOM) And coincidence (shill).

General Dynamics Stock

General Dynamics stock has been merging again after a spat with other defense contractors as the Russian invasion of Ukraine began in late February. Stock has now flat base On the weekly chart, at 255.09 buy points. GD stock has also developed a three-week tight within that flat base. Investors can use this narrow entry at 246.23, just above Friday’s high, as an early buying point above the bulk of recent General Dynamics stock trading.

Raytheon Technologies (RTX) also has a flat base, while Lockheed Martin (LMT) And Northrop Grumman (No objection certificate) consolidate upwards.

Molina Health Stock

Molina stock tested its 10-week streak last week, then rebounded to close 0.6% lower at 337.82. The Ministry of Health stock is now narrow for four weeks, offering 347.72 buying points. This narrow pattern formed almost entirely within the purchase area of ​​a former handle cup base. Investors can use the narrow entry as an additional buy or to start a new position.

health insurance giants United Health (United nations) And National anthem (ANTME) from the buying areas, with UnitedHealth earnings due this coming week.

Market Rise Analysis

The stock market rally took a generally negative turn last week, with growth selling, and SME listings selling. The uptrend has been “under pressure” since Wednesday.

The Dow Jones index fell slightly during the week, and continued to support at the 50-day line, just below the 200-day line. The S&P 500 fell just below the 200-day line but settled above the 50-day level. The Nasdaq Composite fell sharply, closing the week below the 50-day line, joining the Russell 2000 and S&P MidCap 400.

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Just a couple of weeks ago, the market’s rally was looking broad, with strength across many sectors and with shoppers easily beating the dips. But the rally is starting to look narrow and divided, returning to the challenging 2021 environment.

Energy and other commodities stocks continue to lead, along with pharmaceuticals, discount companies and defense companies, while real estate investment trusts and insurance companies are holding up well. But growth, retail, housing, travel and traditional banking are struggling.

This is not surprising, as higher rates are weighing on growth stocks and the housing games, while sharp inflation is starting to weigh on discretionary spending.

Next week, the Labor Department will release the Consumer Price Index and the Producer Price Index. Inflation will intensify, but markets could cheer on any signs of stabilizing price gains. The latest retail sales report will indicate whether shoppers are nicking their coins amid high inflation.

Late next week, China will release first-quarter GDP data and March reports on retail sales and industrial production. But that won’t give insight into the impact of the sweeping Covid lockdown in Shanghai, which began on March 28.

Earnings season will begin to recover, with United Health due on April 14 and Tesla due on April 20, and that could be a catalyst for individual stocks, sectors or the broad market, up or down.

Therefore, while the market rally is at an inflection point, it may not break higher or lower decisively for some time.


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What are you doing now

Dividing the rallies is difficult. Even if the strong sectors are only played, the market can turn away from them quickly, or the weakness becomes widespread. So avoid focusing too much on a specific sector, while keeping your overall exposure modest.

With fluctuating market conditions and changing expectations, investors must remain engaged and prepared to act. Resist the temptation to make a bunch of new purchases. Focus on building your watchlists to discover the leaders in the market’s next sustainable uptrend.

Read The Big Picture Every day to keep up with the trend of the market, stocks and leading sectors.

Please follow Ed Carson on Twitter at Tweet embed For stock market updates and more.

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