Dow Jones futures will open Monday evening, along with S&P 500 and Nasdaq futures, near the end of the long holiday weekend.
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The stock market rally suffered a sharp selloff on Wednesday, but it was more of a rebound scare than a horror show. Major indexes rebounded, closing near weekly highs, with small to solid gains. The Russell 2000 reached its highest level in 20 months on Friday.
But even if the market recovery does not want to retreat, a pause or pullback would be constructive. The Nasdaq looks extended, as do many top stocks.
Nvidia (NVDA) has forged a new buying point. It was the same for You’re here (TSLA), amid an avalanche of headlines. A third Magnificent Seven title, Microsoft (MSFT), remains in a buying zone, with possible additional entries.
samsara (IoT) trades tightly while specialty steels play Tenaris (T.S.) flirts with a buying zone. Supported by Warren Buffett Currently in portfolio (NOT) is located around several key levels.
NVDA and Microsoft stock are on MII classification. Microsoft stock is on Long-term leaders in IBD. Nvidia and IOT shares are on sale MII 50. Tenaris was Friday’s IBD Stock of the Day.
The video embedded in the article analyzed the weekly market action as well as Nvidia, Samsara and TS stocks.
Dow Jones Futures Today
Dow Jones futures open Monday at 6 p.m. ET, along with S&P 500 and Nasdaq 100 futures.
United States the stock market will be closed Monday on the occasion of the Christmas holidays, as well as many other exchanges around the world.
Remember that overnight action Dow Jones Futures and elsewhere does not necessarily translate into real exchanges during the next regular class sotck exchange session.
Join IBD experts as they analyze top stocks and the market on IBD Live
Stock market rally
The stock market rally shrugged off Wednesday’s selloff, with major indexes up for an eighth straight week.
The Dow Jones Industrial Average rose 0.2% last week. stock market trading. The S&P 500 index rose 0.75%. The Nasdaq composite index gained 1.2%. The small-cap Russell 2000 jumped 2.5%.
It’s certainly positive that the market rally held strong after Wednesday’s sharp drop. But the Nasdaq is 7.8% above its 50-day line. The Nasdaq can certainly expand further, but the wider the spread, the greater the risk that a pullback will occur and be more severe. Various sentiment indicators also signal a strong uptrend, strengthening the case for a pullback.
A pause or slight pullback in the market, such as for a few weeks after Thanksgiving, would be healthy. This would allow moving averages to close the gap while leaders could forge new handles or bullish pullbacks.
The 10-year Treasury yield fell two basis points to 3.91% for the week. The two-year Treasury yield, more closely tied to the Fed’s policy outlook, fell 12 basis points to 4.34%.
U.S. crude oil futures rose 2.5% to $73.56 a barrel last week.
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Among growth ETFs, the iShares Expanded Tech-Software Sector ETF (VAT) increased by 1.5% over the week. MSFT stock is a major IGV stock. The VanEck Vectors Semiconductor ETF (SMH) fell by 0.5%. Nvidia stock is the main SMH component.
Reflecting more speculative stocks, ARK Innovation ETF (ARKK) jumped 3.7% last week and the ARK Genomics ETF (ARKG) soared by 6%. TSLA stock is a top holding among Ark Invest’s ETFs.
SPDR S&P Metals & Mining ETF (XME) climbed 6.1% last week. The Global X US Infrastructure Development ETF (PAVE) climbed 1.5%. US Global Jets ETF (JETS) increased by 0.8%. SPDR S&P Homebuilders ETF (XHB) increased by 0.9%. The Energy Select SPDR ETF (XLE) gained 0.8% and the SPDR Health Care Select Sector Fund (XLIV) climbed 0.6%.
The Select Industrial Sector SPDR Fund (XLII) edged up 0.1%, rebounding from midweek lows.
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Stocks Near Buy Points
Nvidia shares fell 0.1% to 488.30 last week. The leader in AI chips now has a new flat base with a buy point of 505.48, right next to a double bottom base.
IOT edged up 0.1% to 34.01. Samsara stock is in a buy range from an entry of 32.41 from a cup base. Stocks now have a three week tight pattern on a weekly chart, with an official entry of 36.91. Investors could use Friday’s high at 35.04 as an early entry.
Samara soared 26% on December 1 following strong earnings and guidance. Since then, IOT stock has largely maintained this powerful move, while the 21-day line has almost caught up.
Microsoft stock rose 1% to 374.58, continuing to approach the 21-day line as the 50-day line narrows the gap. Stocks still range-bound from a 366.78 cup base point of purchase, cleared for the first time on November 10. Investors may want to wait for MSFT stock to break above a short trendline, using Wednesday’s high of 376.03 as a specific entry. Microsoft also has a tight five-week trend with a buy point of 384.30. This should become a flat base, base on base pattern after next week.
Tenaris shares rose 3.3% to 35.25 last week. Stocks are closing in on a flat buy point of 35.98, according to MarketSmith. On Friday, TS stock flirted with an early entry at 35.31. The manufacturer of specialty steel tubes has extensive exposure to the energy market.
NU shares fell 1% to 8.22. Stocks have been tracking the 21-day line since mid-November, while the 50-day line has been catching up. NU stock now has a flat base around the top of an earlier consolidation. The new official buy point is 8.87. But a significant move from the 50-day line, which would also break a very short trendline, could offer an early entry.
Warren Buffett Berkshire Hathaway (BRKB) is an investor in the Brazilian digital banking platform.
Tesla Stock
Tesla stock edged down 0.4% for the week to 252.42, down 0.8% on Friday. Shares are working off a double buy point of 278.98. Technically, TSLA stock now has a very thin handle on a weekly chart, giving it a buy point of 259.84. But ideally the handle would have some depth, perhaps below the December 20 low and at least testing the 21-day moving average.
Norway revealed on Thursday that it had been studying suspension failures in Model S and Model X for more than a year, with a possible decision, including a possible recall, by Christmas. Sweden announced on Friday that it was studying similar issues. It comes as Reuters says it found Tesla knew about faulty suspension and steering parts in its model lineup for at least seven years, but often blamed drivers when those parts failed.
Tesla is working hard to meet its full-year delivery target of 1.8 million electric vehicles. Electric vehicle registrations in China have been strong, while Europe and the United States have been less so, despite the expiration of various subsidies.
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What to do now
The market rally looks strong and there is good reason to be optimistic in 2024. But for now, the major indexes look stretched, as do many leaders.
Staying put therefore remains a good strategy.
Some proto-handles, restricted areas and pullbacks are developing, so investors should work on their watchlists and check them twice.
Read The big picture every day to stay in tune with the direction of the market and the main values ​​and sectors.
Please follow Ed Carson on X/Twitter at @IBD_ECarsonDiscussions about @edcarson1971 and Bluesky at @edcarson.bsky.social for stock market updates and more.
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