Following Monday’s mixed stock market movement, Dow Jones futures, S&P 500 futures, and Nasdaq 100 futures, all moved lower early Tuesday. Nike (NKE) has a new purchase point, although it is still trading below a critical technical level.
The Dow Jones Industrial Average rose 0.8 percent on Monday. The S&P 500 was up 0.2%, and the Nasdaq dropped 0.1%, extending its losing skid.
In today’s stock market, Apple (AAPL) and Microsoft (MSFT) Both of the Dow Jones leaders rose by 0.4 percent. A new purchase point is available for Nike (NKE), however, trading is still below a significant technical level.
After correcting early strong losses on Monday, Tesla (TSLA) rebounded nearly 1%, finding support at a recent buy mark. As a new base begins to form, PayPal (PYPL) fell 1.35 percent on Monday.
The major shop and supervision inventories are Palantir Technologies (PLTR), Shopify (SHOP), UAA, and Yeti (YETI).
IBD Leaderboard stocks include Microsoft, PayPal, and Tesla. Yeti is IBD’s IPO Leader. Nike highlighted this week’s post for Stocks Near A Buy Zone.
Today’s Dow Jones Futures
Dow Jones futures were down 0.2 percent versus fair value ahead of Tuesday’s stock market open, while S&P 500 futures were down 0.1 percent. In comparison to fair value, Nasdaq 100 futures fell 0.2 percent. Note that trading in Dow Jones futures or other places in the following regular stock market session may not necessarily equate to actual trade.
Innovator IBD 50 (FFTY), an exchange-traded fund, fell 2.7 percent on Monday. Invesco QQQ Trust (QQQ), a Nasdaq 100 tracker, fell 0.1 percent. The SPDR S&P 500 ETF (SPY) also gained 0.3 percent.
Mixed Results from the Stock Market Rally
The Nasdaq’s losing run reached four sessions on Monday, while the S&P 500’s five-day losing skid came to an end around its 50-day line. Despite Monday’s improvements, the Dow Jones Industrial Average remains below its 50-day line.
Innovator IBD 50 (FFTY), an exchange-traded fund, fell 2.7 percent on Monday. Invesco QQQ Trust (QQQ), a Nasdaq 100 tracker, fell 0.1 percent. The SPDR S&P 500 ETF (SPY) also gained 0.3 percent.
Mixed Results from the Stock Market Rally
The Nasdaq’s losing run reached four sessions on Monday, while the S&P 500’s five-day losing skid came to an end around its 50-day line. The Dow Jones Industrial Average is still less than its 50-day line, despite advances on Monday.
The Big Picture column on Friday stated, “The S&P 500 and Nasdaq both dipped 1.6 percent and 1.7 percent this week after two weeks of gains. Overall, the losses did not derail the indexes’ longer-term upward trend. However, that upswing has had its share of pullbacks, and it appears that another negative phase is about to begin.”
Check out IBD’s The Big Picture for more stock market analysis.
Watch and buy: inventory of Nike Dow Jones
According to IBD MarketSmith chart analysis, Dow Jones leader Nike is drawing a flat base with a 174.48 buy point. However, the stock dropped 2.5 percent on Monday after BTIG downgraded it from buy to neutral. The stock traded under its major, moving average line for 50 days. It would be bullish for the stock’s immediate prospects if it could reclaim support at that important level.
Nike was Industrial No. 8 of the Dow Jones Average performer through September 10, gaining more than 15%. With a year-to-date return of 53 percent through September 10, Goldman Sachs (GS) was the top Dow Jones stock.
Palantir, Shopify, Under Armour, and Yeti are stocks to watch
Despite Monday’s 1.7 percent drop, Palantir Technologies is back below its cup-with-handle buy point of 26.04, according to IBD MarketSmith chart analysis. The 5% buy zone reaches a high of 27.34.
Shopify is still tracing a flat foundation with a 1,650.10 buy point. SHOP stock has an IBD Composite Rating of 98 out of 99, according to IBD Stock Checkup. The IBD Composite Rating finds stocks that have a good mix of fundamental and technical qualities.
SHOP stock fell 0.5 percent on Monday, and it is now trading below its 50-day line, which it lost last week.
Dow Jones leader Nike is forming a flat base with 174,48 purchase points according to the IBD MarketSmith chart analysis. The stock is attempting to halt its recent decline near the 50-day line. On Monday, the stock market plunged more than 4%.
Yeti, the IPO leader, is constructing a flat foundation with a 105.72 buy price. The stock market fell 0.7 percent on Monday. The relative strength of the stock is close to new highs, which show strong stock market performance. The RS line should reach a new height on the day of the break-out and reaffirm the stock as the market leader.
Last week’s IPO Leaders piece highlighted Yeti.
Stock in PayPal
The stock of PayPal fell 1.35 percent on Monday, following a roughly 1% decrease on Friday. The top stock is trading just below the line of its 50-day moving average.
PayPal is roughly 7% away from the 310.26 buy target on a flat foundation. Meanwhile, at 296.80, or a penny above Wednesday’s high, an aggressive entry looms.
Stock in Tesla (TESLA)
IBD Leaderboard inventories Tesla came back from early losses, recovering approximately 2.5% on Friday, and gained around 1% on Monday. At 730, the shares of Tesla had hardly any other entrance. Shares have recently recaptured their aggressive buy point of 700.10, despite being deep in a decline. Meanwhile, a vast, deep base continues to form.
Tesla shares climbed as high as 93 percent from a 466 buy point in a cup-with-handle on Jan. 25, to a new high of 900.40.
Apple, Microsoft, Dow Jones Leaders
Following a 3.3 percent drop on Friday, Apple rose 0.4 percent Monday among the top Dow Jones equities. The stock market is attempting to find support near the important 50-day line. Above a 148 trendline buy point, Apple stock is still in the buy range.
Beginning at 10 a.m. Pacific time on Tuesday, Apple will host an online event titled “California Streaming.” Apple is expected to unveil its 15th-generation smartphones, the iPhone 13 series, as well as Apple Watch Series 7 wearables, according to analysts.
Microsoft’s stock rose 0.4 percent on Monday. Shares are roughly 15% above the 263.29 buy point of a cup base and reaching new highs.
For more information on growth stocks and the Dow Jones Industrial Average, follow Scott Lehtonen on Twitter at @IBD Lehtonen.
