Dow Jones futures will open Sunday evening, along with S&P 500 futures and Nasdaq futures. That follows a wild week for the stock market rally, in which the Nasdaq held near highs while the Dow Jones and S&P 500 index broke key support.
Amazon.com (AMZN) is in focus with Amazon Prime Day beginning Monday. For investors, this could soon be a prime time to buy Amazon stock.
Snapchat parent Snap (SNAP), PayPal (PYPL), Vale (VALE) and Intuitive Surgical (ISRG) are also near buy points. PYPL stock is in a buy zone now, while Snap, Vale and ISRG stock are closing in on entries.
The stock market rally is in flux, with some worrisome signals to finish the week. Yes, the Nasdaq held up relatively well. But the Dow Jones, S&P 500 and small-cap Russell 2000 fell significantly, closing below their 50-day moving averages as many real economy sectors broke down.
Meanwhile, Bitcoin remains active this weekend. After testing recent highs earlier in the week, Bitcoin and other cryptocurrencies retreated Friday, amid concerns about DeFi coins (decentralized finance system for coins based on blockchain).
Dow Jones Futures Today
Dow Jones futures will open at 6 p.m. ET on Sunday, along with S&P 500 futures and Nasdaq 100 futures.
Coronavirus cases worldwide reached 178.59 million. Covid-19 deaths topped 3.86 million.
Coronavirus cases in the U.S. have hit 34.39 million, with deaths above 616,000.
Stock Market Rally Last Week
The stock market rally generally retreated, with techs holding up while many other sectors suffered sharp losses.
The Dow Jones Industrial Average fell 3.45% in last week’s stock market trading. The S&P 500 index slumped 1.9%. The Nasdaq composite gave up 0.3%, while the Nasdaq 100 actually climbed 0.4%. The Russell 2000 slumped 4.25%.
Among the best ETFs, the Innovator IBD 50 ETF (FFTY) retreated 3.8%, while the Innovator IBD Breakout Opportunities ETF (BOUT) skidded 3.6%. The iShares Expanded Tech-Software Sector ETF (IGV) climbed 1.2%. The VanEck Vectors Semiconductor ETF (SMH) slid 1.8%.
SPDR S&P Metals & Mining ETF (XME) plunged 12.3% and Global X U.S. Infrastructure Development ETF (PAVE) 6.2%, both decisively breaking their 50-day and 10-week lines. U.S. Global Jets ETF (JETS) descended 4.2%. SPDR S&P Homebuilders ETF (XHB) gave up 3.5%, continuing a downward trend over the last several weeks.
The Financial Select Sector SPDR ETF (XLF) sank 6.2% for the week, tumbling below its 50-day line on Thursday-Friday. The 10-year Treasury yield fell to fresh three-month lows reversing sharply to end the week after spiking Wednesday. Meanwhile, two-year Treasury yields rose substantially. The end result is a big squeeze on banks’ lending margins.
Investors could consider buying an ETF like IGV, ARKK or ARKG.
Software is the hottest market sector right now, but many of the recent winners are extended from new buy points. IGV is a way to play this sector for now. Adobe (ADBE) and Microsoft (MSFT) are major IGV components, and Adobe stock has been strong while MSFT is just below a buy point.
ARKK and ARKG are ways to buy beaten-down former leader growth leaders that are rebounding from steep losses, without trying to guess which one will mount a comeback.
Of course, IGV and ARK ETFs have come up a lot over the past few weeks. These groups could keep running, but a pause or pullback would be normal. Further, if the market rolls over or shifts away from techs once again, these ETFs could suffer significant losses.
Bitcoin fell on Friday, currently trading below $36,000. Earlier in the week, the Bitcoin price nearly hit $41,000, threatening to break out of a $30,000-$41,000…