Dow Jones futures rose slightly Sunday night, along with futures for the S&P 500 and Nasdaq futures.
The stock market’s rally has eased last week, with the long-awaited pullback still in play. The selling was organized by the Nasdaq and S&P 500. nvidia (NVDA), apple (AAPL) And Meta platforms (meta) hold their ground or step up, as the father of Google the alphabet (Google) regained a key level by Friday’s close. Tesla (TSLA) declined modestly, but after huge gains recently.
However, the Dow Jones and Russell 2000 indexes and other measures showed more harm.
MDB, HubSpot, Chipotle and Shockwave stocks traded tightly among other bullish technical actions. DXCM stock is trading around the top of the base.
On Friday night, DexCom raised fiscal revenue guidance for 2025 on Investor Day.
With the market rally easing, this is a good time to keep a close eye on the blue chips, and see which names are holding up better. Remember that the stock may find support or bounce from a key level on a given day, eg Super microcomputer (SMCI), but then reverses to the bottom.
NVDA continues to be a true partner and leader in artificial intelligence. while advanced micro devices (AMD) and speculative plays like C3. ai (Amnesty International) broke heavily below the 21-day lines.
Apple stock quietly set a new record high as META stock rose to its best level in 16 months.
Tesla, Nvidia, MongoDB, Meta Platforms, and HUBS are in the works IBD Leaderboard, with CMG arrows on the leaderboard watch list. CMG stock is also on SwingTrader. Tesla and HubSpot stocks are located in defect 50. Tesla, Chipotle, HubSpot, and MDB stocks are available at IBD Big Cap 20.
The video embedded in this article discussed market movement and HubSpot analyzed, Rockwell Automation (The Republic of Korea) and Google stock.
Dow jones futures today
Dow futures rose 0.2% against fair value. S&P 500 futures rose 0.2% and Nasdaq 100 futures rose 0.2%.
Crude oil prices rose slightly.
The 10-year Treasury yield fell to 3.73%.
Remember that overnight action in Dow futures and elsewhere does not necessarily translate into actual trading in the next regular stock market session.
The stock market rose last week
The stock market rally snapped multi-week winning streaks, with the Nasdaq showing modest declines while smaller companies struggled.
The Dow Jones Industrial Average fell 1.7% in trading last week. The S&P 500 and Nasdaq Composite Indexes fell 1.4%. Russell 2000 junior stock fell 2.95%.
The 10-year Treasury yield fell 3 basis points, to 3.74%.
US crude oil futures fell 3.85% to $69.16 a barrel last week. Copper futures fell 2%, including Friday’s drop of 2.1%. In addition to global demand concerns, the US dollar had a strong week.
Exchange Traded Funds
Among the ETFs, the Innovator IBD 50 ETF (fifty(down 1.65% last week, while the Innovator IBD Breakout Opportunities ETF)fit) sank 1.7%. iShares Expanded Technology and Software ETF (IGV) fell just over 3%, with a component of HUBS stock. VanEck Vectors Semiconductor Corporation (SMH) gave up 3.8%. Nvidia stock is the #1 holder in SMH, with AMD stock also a notable component.
Reflecting more speculative stories, the ARK Innovation ETF (ARK)ark(down 4.9% last week and the ARK Genomics ETF)ARKG) lost 5.3% after seven weeks of gains for both. Tesla stock is the highest-grossing ETF on Ark Invest.
SPDR S&P Metals & Mining ETFs (XME) fell by just over 2% last week. Global Infrastructure Development Fund X US (cradle) fell 0.5%. US Global Gates Foundation ETF (Planes) fell by 1.75% after three large weekly gains. SPDR S&P Homebuilders ETF (XHB) increased by 0.5%. Energy Defined Fund SPDR ETF (xle(down 4.3% and the SPDR Health Care Sector Selection Fund)XLV) decreased by 0.2%. SPDR Industry Selection Fund (XLI) fell 2.1% after a three-week surge.
Top five Chinese stocks to watch now
Stocks near buy points
MongoDB stock rose 2.7% to 389.99 in an outside bullish week. MDB stock is within a three-week narrowing pattern or a very narrow flag with 398.89 buy points. The RSI line is around a 10-month high, and has been rising sharply since early May. This reflects the MDB’s strong performance against the S&P 500.
MDB stock rose 4.1% Thursday as the database software company made several artificial intelligence announcements and an expanded partnership with Google Cloud at Investor Day. That provided a strong entry around 385 or 389. MongoDB stock rallied on Friday, stabilizing strongly with several winners selling Thursday.
HubSpot stock fell 1.4% to 512.21, continuing to find support at the 21-day line. HUBS stock has 535.12 buy points from a four-week narrowing pattern. A move above Friday’s high of 522.20 could provide an early entry.
Chipotle stock closed off highs, but rose 0.5% last week to 2,043.68, continuing to trade around the 21-day and 10-week lines. CMG stock has a narrowing five-week pattern and is now also a flat bottom, both with 2,139.88 buy points, according to MarketSmith analysis. However, investors can use the move above Wednesday’s high of 2092.51 as an early entry.
Shockwave stock witnessed some wild moves on the daily chart, but on the weekly chart it showed a narrow closing. Shares fell 0.6% to 292.63, ending four weeks of modest gains. SWAV stock is finding support on the 21-day and 10-week lines. Investors can still use a cup buy point with a handle of 308.09. Level 300 was a master level and could be an early entry.
DexCom stock fell 2.6% to 126.75 last week. But DXCM stock snapped a four-day losing streak on Friday, finding support at the 21-day line and holding a buy point of 126.44. The diabetes product giant has been trying to scan a range dating back to the beginning of November.
Late Friday, Dexcom said it expected 2025 sales of $4.6 billion to $5.1 billion. This is an increase of $600 million over the previous range. The company also slightly raised some profit margin forecasts for 2025.
S&P 500 Giants Lead 5 Stocks Near To Buy During Market Downturn
Nvidia fell 1.1% to 422.09 last week, just off a record high to a 10-day streak. A pullback to the 21-day line may provide a buying opportunity.
AMD stock slid 8.4% to 110.01, crossing the 21-day line and pulling back just above the 10-week line. Shares are down 17% from a 52-week high of 132.83 on June 13, when AMD unveiled new artificial intelligence chips aimed at rivaling Nvidia’s offerings.
Meanwhile, AI stock fell 25% to 33.39. On Friday, C3.ai stock fell 10.8%, below its 21-day line, and is now back in a deep consolidation that cleared out earlier this month. AI stock is still basically a weakness from its early May low, but it’s now nearly 32% off its 52-week high of 48.87 set just one week ago.
Tesla shares fell 1.5 percent to 256.60, after rebounding from 276.99 on Tuesday, the highest point in nearly nine months. This came amid three downgrades in analysts’ credit ratings during the week, most of them on valuation.
After a second big rally in 2023, including a record 13-day winning streak, Tesla stock is set to take a crack, especially amid a broad market downturn. It is still extended even by the 21-day moving average.
TSLA stock is probably starting to form a sign of consolidation as far back as late September. Due to its depth of embedding and strong recent operation, Tesla could use a handle of some length and depth.
Apple stock, dead
Apple and Meta stocks didn’t act like there was a market downturn. Both continued to find support from the rapidly rising 10-day lines. AAPL stock rose nearly 1%, hitting a new record high. Meta stock advanced 2.7% to its best level in 16 months.
Market forecasts for the next six months
Market rally analysis
The stock market rally fell last week. So far it’s been an orderly decline for the S&P 500, Nasdaq, and most blue-chip stocks, though range remains an issue.
The Nasdaq, which extended after eight weeks, is down nearly 10 days, but it came off Friday’s lows and didn’t undermine Thursday’s low. The S&P 500 fell slightly below the 10-day line. Apple, Meta, Nvidia and Tesla stocks provided some support.
The Dow fell below the 21-day line to test the 50-day line on Friday. Russell 2000 is also down in 21 days and is approaching the 200 day and previous range top.
First Trust Nasdaq 100 Equal Weighted Mutual Fund (QQEW) fell 2.8% for the week, much worse than the Nasdaq 100’s 1.5% decline. QQEW fell to the 21-day streak.
Invesco S&P 500 Equal Weight Fund (RSP) fell 2.7%, falling below the 21-day line and April highs. It is not far from testing the 50-day streak. The RS line of the RSP continues to weaken, dropping to its worst level since late 2020. This shows how the RSP continues to perform below the S&P 500 level.
The advance and decline lines weakened significantly last week. While it’s normal to see the losers rule a market downturn, more strength outside of the growth leaders would be nice.
Is the market downturn about to end? It’s possible. But with the Nasdaq up 6.5% on the 50 day and the Nasdaq 100 up 7.7% above that line, they would quickly look significantly extended again if they rally higher.
A decline in the Nasdaq and the S&P 500 to their 21-day lines over the course of a week or two would help. This will round the 50 day lines.
During a strong trending market, second-tier names and even laggards will advance. Withdrawal separates the true leaders, but it is an ongoing process. Some of today’s resilient stocks may start to pull back, while others that have taken some hits may consolidate. Google stock is an example of the latter. After falling below the 21-day line on Wednesday and approaching the 10-week line on Thursday morning, GOOGL stock has bounced back above the 21-day line.
Big chip, software, and project growth names remain market leaders, including MongoDB and HubSpot, along with homebuilders and some other housing stocks. Medicinal products is an emerging area, with SWAV and DexCom stocks in the field. Some restaurants like CMG stock are on the list as well.
It’s time to market with IBD’s ETF Market Strategy
What are you doing now
The stock market rally appears to be in a normal and healthy decline, with relatively modest losses. But it can get more intense. Also, you don’t know how individual stocks and sectors will hold up.
Investors in general should hold their ground, waiting for signs that the downturn is over. Look for stocks that are respecting key levels and showing improving relative strength.
If you feel compelled to trade now, be prepared to jump in again. Thursday’s market rebound flashed some strong entries. MDB stock is holding up for now, but many other stocks quickly turned out to be soft or solid losers.
The current pullback could be paving the way for several buying opportunities in the coming days or weeks. So it’s time to get ready and build your watchlists. Stay tuned, keep an eye on the market movement in general and be ready to pounce near buying points.
Read the big picture every day to stay in sync with market trend, leading stocks and sectors.
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