Dow Jones Futures: Market Rally Resilient; What To Do Now

Dow Jones futures will open on Sunday evening, along with S&P 500 futures and Nasdaq futures.


The stock market rally showed strength and resilience this past week. The major indexes soared Wednesday in a bullish reaction to Fed chief Jerome Powell’s speech, with the S&P 500 retaking its 200-day moving average. On Friday, the S&P 500 tested and held that key level for a second straight session, despite a hot jobs report.

Investors could be increasing exposure incrementally, but the 200-day line is still in play. Don’t get too aggressive until there’s a decisive clearing of that long-term level.

Dow Jones giant Boeing (BA), lithium giant SQM (SQM), Dexcom (DXCM), Cheniere Energy (LNG) and the Invesco Solar ETF (TAN) are all near buy points. Boeing, Dexcom, SQM stock and the TAN ETF — which includes First Solar (FSLR), Enphase Energy (ENPH) and many other top names — are actionable now. LNG stock has a new flat base.

Chip giants Taiwan Semiconductor (TSM) and Nvidia (NVDA) have rallied strongly over the past several weeks, closing in on their 200-day moving averages. Taiwan Semi and Nvidia stock back above the 200-day lines wouldn’t offer buying opportunities, but would be a positive sign for techs and the overall market rally. Chips almost always participate in last market uptrends, given their market heft and their key role in so many industries.

Enphase and DXCM stock are on IBD Leaderboard. BA stock is on SwingTrader. ENPH stock is on the IBD 50. The TAN ETF was Friday’s IBD Stock Of The Day.

Earnings season is finally easing, while the economic calendar is less intense in the coming week. But on Sunday, OPEC+ will meet, with the oil cartel and key allies deciding on crude production quotas to start the new year.

Dow Jones Futures Today

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

Remember that overnight action in Dow futures and elsewhere doesn’t necessarily translate into actual trading in the next regular stock market session.

Join IBD experts as they analyze actionable stocks in the stock market rally on IBD Live

Stock Market Rally

The stock market rally had a strong week. The indexes’ gains were modest-to-solid but found support and broke above key resistance.

The Dow Jones Industrial Average edged up 0.2% in last week’s stock market trading. The S&P 500 index climbed 1.1%. The Nasdaq composite jumped 2.1%. The small-cap Russell 2000 1.3%.

The 10-year Treasury yield dived 18 basis points to 3.51%, the lowest since late September. The 10-yield bounced Friday with the strong jobs report but ultimately closed slightly lower that day

U.S. crude oil futures rose 4.9% to $79.98 a barrel last week, but fell back below $80 on Friday. Natural gas plunged more than 14%.


Among the best ETFs, the iShares Expanded Tech-Software Sector ETF (IGV) rose 2%.

The VanEck Vectors Semiconductor ETF (SMH) climbed 1.1% last week, but fell back below its 200-day line on Friday. TSM stock and Nvidia are both major components. Taiwan Semi edged up 0.1% for the week. Nvidia stock rose 3.7%.

SPDR S&P Metals & Mining ETF (XME) leapt 4.4%% last week to the best level in nearly six months. The Global X U.S. Infrastructure Development ETF (PAVE) climbed 1%. U.S. Global Jets ETF (JETS) ascended. 0.7%. SPDR S&P Homebuilders ETF (XHB) advanced 0.9%. The Energy Select SPDR ETF (XLE) fell 1.7% and the Financial Select SPDR ETF (XLF) fell 1.7%. The Health Care Select Sector SPDR Fund (XLV) advanced 1.9%, nearing a record high. DXCM stock is an XLV component.

Reflecting more-speculative story stocks, ARK Innovation ETF (ARKK) rebounded 6% last week and ARK Genomics ETF (ARKG) 4%.

Five Best Chinese Stocks To Watch Now

Stocks Near Buy Points

Boeing stock rose 2.5% to 182.87 for the week. Boeing popped 4% Friday, on a Wall Street Journal report that United Airlines (UAL) is close to buying “dozens” of 787 Dreamliner jets. BA stock is just beyond the 5% chase zone of a 173.95 cup-base buy point, but investors could treat clearing recent levels as an alternate entry.

SQM stock 7.8% to 99.85 last week, rebounding from near its 200-day line and reclaiming its 50-day. While the lithium giant has an official 112.45 cup-with-handle buy point, an early entry around current levels might be safer.

DXCM stock rebounded from its 21-day line last week, breaking the downtrend of a short consolidation to offer an early entry. Shares closed up 5.5% to 118.11, still relatively close to its 21-day line, with its 10-week line racing to catch up. Dexcom stock now has a flat base on a weekly chart with a 123.46 buy point, according to MarketSmith analysis. That flat base could be seen as a handle to a deep cup going back to early April.

LNG stock edged up nearly 1% to 174.72, finding…

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