Dow futures fell after hours, along with S&P 500 futures and Nasdaq futures.
The stock market rally made solid gains on Tuesday after a mixed session on Monday. The Nasdaq and S&P 500 have bounced off close to their 21-day exponential moving average, along with a massive outcry. Tesla (TSLA) And nvidia (NVDA). Overall market breadth was strong.
Tesla, On Holding, and Nvidia stocks are in the running IBD Leaderboard, while the UAL arrow is in the leaderboard watchlist. United Airlines and ONON shares on defect 50. Tesla stock is located at IBD Big Cap 20. United Airlines stock was IBD Bank stock on Tuesday.
Is the market downturn over or is this just a one-day snapshot? That’s a big question. Investors can take advantage of buying opportunities, carefully, but are willing to pull back if positions or the broader market pulls back again.
The video embedded in this article discussed the strong rally in the market on Tuesday and analyzed FDX, United Airlines, and… datadog (DDOG).
in other news, Soul Aviation Systems (SPRWe have reached a preliminary agreement with the striking workers, CNBC reported Tuesday night. Spirit Aero builds the fuselage for the 737 Boeing (Bachelor’s). SPR stock rose slightly in late trading. BA stock also advanced slightly.
Dow jones futures today
Dow futures fell against fair value, even as Boeing stock provided a small boost. S&P 500 and Nasdaq 100 futures were down 0.1%.
Remember that overnight action in Dow futures and elsewhere does not necessarily translate into actual trading in the next regular stock market session.
Stock market rise
The stock market rally enjoyed a strong broad-based advance. The Dow Jones Industrial Average rose 0.6% in stock market trading Tuesday. The S&P 500 rose 1.1%. The Nasdaq Composite jumped 1.65%. Small Capital Russell 2000 jumped 1.5%.
US crude oil prices fell 2.4 percent to $67.70 a barrel.
The 10-year Treasury yield rose 5 basis points to 3.77%, staying within a range dating back to late May.
Exchange Traded Funds
VanEck Vectors Semiconductor Corporation (SMH) jumped 3.2%. NVDA, SMH’s largest holding company, rose 3.1%, bouncing near the 21-day line. But it was an internal day after falling 3.7% on Monday.
Reflecting more speculative stories, the ARK Innovation ETF (ARK)ark(jumped 3.4% and ARK Genomics ETF)ARKG) increased by 0.7%. Tesla stock is the #1 component across Ark Invest’s ETFs. The EV giant rose 3.8% to 250.21 on Tuesday, rebounding from the 21-day streak but after falling 6.1% on Monday. Arguably, TSLA stock has a buy point at 274.75 on the consolidation going back to September.
SPDR S&P Metals & Mining ETFs (XME(by 1.3% and the US Global X Fund for Infrastructure Development)cradle) 1.7%. US Global Gates Foundation ETF (Planes) flew 4.4%, with shares of UAL and American Airlines large portions of the ETF. SPDR S&P Homebuilders ETF (XHB) by 2.9%. Energy Defined Fund SPDR ETF (xle(Increased 0.2% and SPDR Healthcare Sector Choice Fund)XLV) decreased by 0.2%.
SPDR Industry Selection Fund (XLI) increased by 1.2%.
Top five Chinese stocks to watch now
Stocks in buy zones
UAL stock jumped 5.1% to 56.03, taking 54.05 cups from the buy handle point. AAL stock jumped 5.5% to 17.35, hovering above the 16.72 entry level from its cup of handle, according to MarketSmith analysis. United and America jumped according to each other Delta Airlines (DAL) raised steering the whole year. DAL, already extended, jumped 6.8%
FDX stock jumped 5% to 246.76, jumping above 235.81 flat base buy points. FedEx had peeked above that entry in mid-June, but then pulled back on mixed earnings. Stocks quickly rebounded from the 50-day line.
AMKR rose 11.4% to 29.37 on huge volume, easily surpassing a buy point of 27.20. The chip equipment maker has now crossed its 5% buy zone, which extends to 28.56.
ONON stock rose 2.2% to 31.30, and is still in the range from the 50-day line and the trend line. The high-end sneaker maker moved above those key levels on Monday. During the day on Tuesday, shares slipped above 31.45, a short-term high.
Stock market forecast for the next six months
Market rally analysis
The stock market rally saw a clear bullish session. Indices rebounded around a key short-term level in higher volume, with strong breadth and a number of stocks flashing buy signals.
The Nasdaq and the S&P 500 have rebounded from the 21-day boundary. Meanwhile, the Dow Jones and Russell 2000 indices have regained that key level.
Invesco S&P 500 Equal Weight Fund (RSP), which rebounded for 21 days on Monday, rose 1.2% on Tuesday, breaking through the recent downtrend and topping the 10-day line.
First Trust Nasdaq 100 Equal Weighted Mutual Fund (QQEW), which fell only 0.2% on Monday, rose 1.7% on Tuesday, also rebounding from 21 days.
The losers handily beat the losers on Tuesday.
Airlines and travel were big gainers, but chips and software, industrial companies, transportation and the broad housing sector all showed upward movement as well.
Energy remains a weak area, while biotech and some sectors struggle.
Tuesday may mark the beginning of a new phase in the market rally. The Nasdaq held a follow-up day later. But it has not completely broken the recent decline which is just below the 10-day line.
Also, after rebounding on Tuesday, the Nasdaq is up 6.5% above the 50-day moving average while the Nasdaq 100 is up 7.5%. It wouldn’t take much for them to reach extreme levels again.
It’s time to market with IBD’s ETF Market Strategy
What are you doing now
With the stock market rally showing positive signs, investors could certainly have looked for places to add some exposure. There is still a risk that the pullback is not over, and that buying opportunities on Tuesday will quickly go south. But if you wait for definitive evidence that the downturn is over, such as the Nasdaq hitting a new high, it will be too late to chase the stock.
One option is to take smaller positions on new buys. Be prepared to move quickly and consider taking partial profits quickly to reap some winnings.
Keep the purchases as close as possible to the entries. This will provide some protection from stock and market reversals.
Surely you have your watchlists ready. Broad progression combined with diverse leadership means that it is difficult to keep track of all the promising stocks. But this is a good problem.
Read the big picture every day to stay in sync with market trend, leading stocks and sectors.
Please follow Ed Carson on Twitter at @employee For stock market updates and more.
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