Dow Jones futures will open on Sunday evening along with S&P 500 futures and Nasdaq futures.
The stock market again took heavy losses over the past week as a stoic Federal Reserve raised Treasury yields again. The Dow Jones hit June lows on Friday, with other major indices turning closer. The last development leaders began to break down.
With market corrections intensifying, it is time for investors but also to look for potential leaders. Some medical stocks are showing relative strength, including Eli Lilly ,LLY) Chinese e-commerce giant pinduoduo ,PDD) Something is calmly pulling back. Apple ,AAPL, Tesla ,TSLA, Enphase Energy ,ENPH) And Albemarle ,album) are coming under increasing pressure, but are still worth watching for the future.
dow jones futures today
Dow Jones futures open Sunday at 6 p.m. ET, along with S&P 500 futures and Nasdaq 100 futures.
stock market action
The stock market took heavy losses again last week, closing near weekly lows despite a mini-bounce at Friday’s close.
The Dow Jones Industrial Average fell 4% over the past week stock market trading, The S&P 500 index lost 4.6 percent. The Nasdaq Composite lost 5.1%. The small-cap Russell 2000 fell 6.6%.
The 10-year Treasury yield rose 25 basis points to 3.7%, limiting its eighth consecutive weekly gain.
US crude futures fell 7.1% last week to $78.74 a barrel, hitting their lowest level since January.
in the middle Best ETFsThe Innovator IBD 50 ETF (ffty) fell 10.8% last week, while the Innovator IBD Breakout Opportunities ETF (boxing) 6.5% skid. iShares Extended Tech-Software Sector ETF (tub) fell 5.4%. VanEck Vector Semiconductor ETF (smh) lost 5.7%.
SPDR S&P Metals & Mining ETF (XME) dropped 8.3% last week. Global X US Infrastructure Development ETF (expansive) 5.3% shed. US Global Jets ETF (jet) fell 9.1%. SPDR S&P Homebuilders ETF (XHB) withdrew 4.2%. The Energy Select SPDR ETF (XLEDive the 10.15% and Financial Select SPDR ETF (45) lost 6.1%. Health Care Select Sector SPDR Fund (xlv) declined 3.6%
Apple stock closed near a weekly low, but fell only 0.1% to close at 150.54. On Wednesday, AAPL stock hit resistance near its 10-week and 40-week lines and bounced back near recent lows. But, he relative strength line Reached new highs on Friday. Apple stock still has 176.25 handle buy points, but the first test will retrieve its 50-day and 200-day lines.
Eli Lilly stock actually rose 0.9% to 311.60 last week. Shares jumped nearly 5% on Thursday after positive drug news and an analyst upgrade. LLY stock is on the wrong side of its 50-day line, hitting resistance there on Friday. But the RS line is running high. The pharmaceutical giant has 335.43 . Is flat base point of purchase, according to marketsmith analysis, Slightly above the 50-day line is a potential trendline entry, but this is not a good time to make any purchases.
Enphase stock fell 12.1% last week to 279.49, marginally lowering its 50-day line and lowering recent lows. Ideally, ENPH stock will consolidate for some time, perhaps forming a fresh base.
Pinduoduo’s stock fell 8.5% to 60.08, below its 21-day line and 50-day close. PDD stock has given up nearly all of its gains since the Chinese e-commerce giant reported blowout results in late August, briefly breaking out.
But the RS line remains close to the 52-week high. A pullback to the 50-day line could be bullish, perhaps forming a new base.
Of course, China’s risks are always higher, while PDD stock is one of the e-commerce names, or Chinese stocks in general.
Albemarle stock fell 6.1% to 269.69 in the past week, but found support at its 50-day line on Friday. ALB stock is still at 250.25 . is above point of purchase Round-tripping gains from a smaller handle in early August, while a massive 273.78 alternate entry cup-with-handle base, There is currently no clear entry for ALB stock.
Lithium prices are hot and will likely remain in place indefinitely with EV demand rising and lithium production disrupted. But there’s no doubt that ALB stock and other lithium plays can be very volatile, subject to major selloffs.
Tesla stock fell 9.2% to 275.36, with an even bigger loss from Wednesday’s peak. TSLA stock broke below its 200-day and 50-day lines, but remained above recent lows. The EV giant now has a valid consolidation with 316.74 buy points along with a more intense consolidation. Tesla stock has a handle entry of 313.90 on the weekly chart.
The RS line was trending higher till the end of last week.
Weekly China sales data, potentially as of Tuesday, could dampen or strengthen Tesla demand. Global production and delivery data for the third quarter will follow in early October.
stock market analysis
The stock market suffered heavy losses for another week. The Dow Jones hit its June low with the NYSE Composite on Friday. The Nasdaq, S&P 500 and Russell 2000 haven’t done so, but just need another bad day to break lower.
Can we have a bounce? Certainly, the market seems oversold by various measures, while the June lows are a logical place to attempt a rally. The CBOE Volatility Index rose to a three-month high on Friday, although market fears are not at an extreme level.
Of course, the surge doesn’t have to come immediately. And a good day or two won’t matter much if the index starts selling quickly.
The Treasury yield and the US dollar would be needed to prevent or pull back any stock market bounce.
In the past few weeks, market rallies, including intraday ones, have been low volume cases, followed by heavy selling.
There is a strong possibility that the bear market is at the bottom of yet another important phase. Even when the market does finally bottom out, it can take a long time to gain a higher power.
What can change dynamic? On September 30, the Federal Reserve will get the August PCE Index, its preferred inflation gauge. The September jobs report will come a week later. A positive reading would be a relief, but the Fed wants to see a continued decline in core inflation and job market weakness.
In the meantime, expect bigger warnings over the next few weeks. High labor costs, supply chain woes, rising interest rates, a rising dollar and a stalled economy are a recipe for earnings despair.
Some sectors are performing relatively well, but the emphasis is relative.
This includes drug giants such as LLY Stock, as well as some biotechs and other medicals, including medical names. Pollution control still looks fine. But many stocks with the RS line that are rising or hitting new highs are faltering and are on the wrong side of the 50-day and 200-day lines.
Just because someone is holding a stock doesn’t mean it will continue to do so in a market correction. There was a sudden sharp selloff in a large number of flexible stocks last week. This includes growth holdouts that are starting to sell hard, such as Enphase and TSLA stock.
If there is further damage to these stocks, it may mean that the repair time may be extended. Then again, the same can be said about the overall market.
What should we do now
Investors should be on edge. There are very few stocks that, reeling from market downturns, are even relative winners.
Keep building your watch list with an emphasis on relative strength. Almost all charts will look terrible with a few exceptions like LLY stock, but for now it’s okay.
If you’re looking for shorts, it’s probably best to wait for a bounce, with a stock or major index moving back up to key levels and hitting resistance. But work on those potential lists as well.
Remember, it is very hard to make money in a bear market. The time for big gains will come in the next strong market rally. It is important to stay engaged and prepare for that uptrend.
Reading big picture Every day to keep pace with market direction and major stocks and sectors.
Please follow Ed Carson on Twitter @ibd_ecarson For stock market updates and much more.
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