Dow Jones Futures: Market Rally Runs To Key Resistance; 5 Stocks Flash Buy Signals

Dow Jones futures slanted higher overnight, along with S&P 500 futures and Nasdaq futures, with Z-climber (ZS) Y docusign (DOCU) among the notable earnings report. The stock market’s rally was up and down on Thursday, eventually closing near session highs, setting up a major test for its 50-day moving averages.


Neurocrine Biosciences (NBIX), Vertex Pharmaceuticals (VRTX), BioMarin Pharmaceuticals (BMRN), rye (CNC) Y axonal (AXNX) showed buying signals on Thursday.

But while these five stocks lead the market, they are not independent of it. NBIX and Vertex shares were still actionable at the close, but came off intraday highs as the indices strayed from their best levels. Stocks in Centene pulled back and may need a little more muscle. BMRN shares showed strong action, closing high in the day’s range, but on light volume. Only AXNX shares closed up really strongly, and that came on the news of a Axonics Product Milestone.

down, Apple (AAPL) was removed a day after uploading more with the new iPhone 14 and other products. Megacaps are lagging behind in the current market environment, with all transactions below their 200-day moving averages. Tesla (TSLA) is the only way to make a real move towards the 200 days at this point.

After the market close, cybersecurity firm Zscaler and document software specialist DocuSign reported better than expected quarterly results and gave solid guidance. ZS shares rose overnight, while DOCU shares soared. Former leaders are well off the highs and far from actionable, but the reports bode well for software stocks and IT spending.

NBIX and Vertex Pharmaceuticals shares are on the march IBD classification table. Shares of Tesla and Axonics are in the IBD 50. VRTX shares are in the IBD large cap 20.

Dow Jones Futures Today

Dow Jones futures rose against fair value. S&P 500 futures edged higher. Nasdaq 100 futures advanced 0.1%.

Remember that the overnight action in dow futures and elsewhere does not necessarily translate to actual trading in the next regular stock Exchange session.

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stock rally

The stock market rally had an up and down session, selling near the open, bouncing for solid gains and going back and forth before finally moving forward with decent gains after Wednesday’s strong rally.

Just before the market opened, Fed chief Jerome Powell reiterated that he is “strongly committed” to fighting inflation, reinforcing expectations of a third consecutive 75 basis point rate hike on Jan. 21. September. Shortly before that, the European Central Bank raised its key rate by 75 basis points. Subsequently, ECB sources hinted that another 75 basis points could arrive in October.

Meanwhile, initial jobless claims defied forecasts, falling for the fourth week in a row, sending another signal to Fed chief Powell that labor markets are still very tight.

The Dow Jones Industrial Average and the Nasdaq Composite rose 0.6% in trading on Thursday. stock trading. The S&P 500 index gained 0.7%. The small-cap Russell 2000 led with a 0.8% gain.

US crude prices rose 2% to $83.54 a barrel after falling to their lowest levels since January on Wednesday.

The 10-year Treasury yield rose 3 basis points to 3.29%.

Between best ETFsthe Innovator IBD 50 ETF (FFTY) rose 1.5%, while the Innovator IBD Breakout Opportunities ETF (COMBAT) gained 1%. The iShares Extended Technology Software Sector ETF (VAT) and VanEck Vectors Semiconductor ETF (SMH) rose 1.4%.

SPDR S&P Metals & Mining ETF (XME) rose 0.6%. The Energy Select SPDR ETF (XLE) advanced 0.4% and the Financial Select SPDR ETF (XLF) 1.8%. The SPDR Fund of the Select Sector of Health Care (XLV) gained 1.7%. The CNC and Vertex stock are XLV components.

Mirroring more speculative historical stocks, ARK Innovation ETF (ARKK) blew 3% and ARK Genomics ETF (ARKG) 3.6%. Tesla shares are a major holding in Ark Invest ETFs.

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apple stock

Apple shares fell 1% to 154.45 on Thursday. Stocks hit their lowest levels since late July. the relative strength line it is now rapidly falling after all-time highs recently recorded on August 17. As the most valuable publicly traded company in the US make a lot of progress. The other mega-cap stocks are also struggling.

Tesla Stock

Shares of Tesla are a partial exception to the mega-cap malaise, rising almost 2% to 289.26. It is now up 7% this week, rebounding from its 50-day moving average. But this week’s gains have come on weak volume. And TSLA shares remain below their 200-day declining line. A decisive move above the 200 day line, perhaps breaking above the 300 level or the 14 Aug high of 314.64, would offer an early entry.

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Market recovery analysis

The stock market rally shrugged off solid early losses, unwilling to give up Wednesday’s big gains. Despite some numerous intraday swings, all major indices closed near session highs.

After appearing to meet resistance at their morning highs, the S&P 500 and Russell 2000 finished just below their 50-day moving averages. Considering that the S&P 500 approached a point of its 200-day line on August 16, with the small-cap Russell just above the level, marking the top of the current rally. On September 2, the S&P 500 and the Russell 2000 both touched their 50-day line and then pulled back sharply.

So the 50 day moving average is not just a line on a chart. A decisive move above that level would be a bullish sign. Note that the 21-day moving average is getting closer to the 50-day for all key indices.

Above those lines, a market rally might have a bit of room to run, but the 200-day average would be the ultimate test.

Investors should follow the market primarily through major indices and leading stocks. In recent days, the major stocks have been looking better than the major indices.

But Neurocrine, Centene and Vertex all came off highs as the market initially hit resistance, with even the Nasdaq, S&P 500 and Dow Jones closing near Thursday’s best levels. If the major indices head south again, most stocks will follow suit.

Solar energy and pollution control actions are working well. So are a wide variety of medical names for biotech, products/systems, and health insurers. Lithium games are heating up, but volatile graphics make them unwieldy.

Some tech names are setting up, but overall they are not yet showing signs of buying. But continued market strength could see technologies trigger buying points, along with stocks from a variety of sectors.

It’s okay if large-cap stocks like Apple don’t lead a market uptrend, but it would be healthy for some of them to actively participate.

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What to do now

More stocks are showing buying signals, at least intraday. So it’s understandable that investors choose to nibble on some new positions, with the aim of getting an early ticket into some big races.

Remember that with the major indices so close to their 50-day lines, taking on a new position becomes even riskier unless and until the major indices break decisively higher. So, consider taking small positions, at least to start, and get ready to make quick profits and ruthlessly cut losses.

If you stop taking new positions for now, there will be other buying opportunities if the market gains momentum. A lot of stocks are close to being actionable or close to being close.

So work on your watch lists. Stay alert and be nimble.

Read The panorama every day to stay in sync with market direction and major stocks and sectors.

Follow Ed Carson on Twitter at @IBD_ECarson for stock market updates and more.


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