Dow Jones futures will open Sunday evening, along with S&P 500 futures and Nasdaq futures. A new stock market rally attempt is underway as another wild week on Wall Street ended on a high note. Apple stock reclaimed its 50-day line while Tesla (TSLA) held that key support. Meanwhile, many top stocks are already showing promising charts, including Alibaba (BABA), Target (TGT), Nvidia (NVDA), Broadcom (AVGO), and Sea Limited (SE).
After the long stock market rally came under increasing pressure, IBD changed the market direction to “correction” on Wednesday. But on Thursday and especially Friday, the stock market rebounded. The Nasdaq composite could confirm a new uptrend any day. A slew of leading stocks are setting up or flashing bullish rebounds or early entries.
Apple (AAPL) is once again above its 50-day line while fellow Dow Jones giant Microsoft (MSFT) isn’t far off. Tesla stock tumbled last week amid wild swings, but held above its 50-day line and finished just over its 21-day exponential moving average.
Target stock has a formed a base while Alibaba has pulled back to its buy point and is finding support at its 50-day line. Nvidia has rebounded from its 10-week line while Broadcom stock has traded tightly amid market gyrations. Sea Ltd. is moving toward record highs in a short consolidation. All five stocks have relative strength lines at or near highs, reflecting their outperformance vs. the S&P 500 index.
But there has not yet been a follow-through day to confirm the new stock market rally attempt. So investors should maintain a defensive stance heading into next week. But investors should game plan for offense and defense.
Nvidia stock, Tesla, Microsoft are all on IBD Leaderboard, while Alibaba is on the watchlist.