Dow Jones futures and S&P 500 and Nasdaq futures will begin trading on Sunday night.
Fed’s Chairman Powell said on Friday that more “pain” is required to drive inflation down, sending stock prices down for a consecutive week.
On Friday, the leading indices fell, with most of the market returning to its 50-day moving average.
Several equities, including Axcelis Technologies (ACLS), which had flashed buy signs on Thursday, declined on Friday.
Even if some companies did not participate, Steel Dynamics (STLD) is one example.
Investors should be wary about taking on additional risk as the market keeps falling.
If they acquired too many shares in stretched companies in recent days or otherwise become overexposed, they may want to pause.
Although the timing of any potential profits from the market’s present “pain” is uncertain, it may be paving the way for significant gains in the future.
This is because handles are emerging on some equities, while others are making progress on bases or maybe on trajectories that lead to positive pullbacks.
Two companies that have forged handles in the current sell-off are Apple (AAPL) and Arista Networks (ANET). The distance of Apple stock and Arista from important moving averages has narrowed.
Meanwhile, trading in Tesla shares is quite active at important support and resistance levels.
Both ACLS and Steel Dynamics are included on the IBD Leaderboard. In addition, SwingTrader also provides access to STLD shares.
The IBD 50 includes ANET shares and Tesla (TSLA). The Big Cap 20 includes shares of both Arista and STLD.
Following Apple stock and Steel Dynamics as the past two days’ IBD Stock of the Day choices, Arista Networks was named the winner on Friday.
At the same time, investors will be paying close attention to Pinduoduo (PDD), Baidu (BIDU), BYD (BYDDF), Nio (NIO), and Li Auto (LI) this coming week as they anticipate significant developments for these companies in China.
A rumor suggesting a U.S.-China auditing agreement was near boosted Chinese equities listed in the United States on Thursday, with some gains being rather substantial. Confirmation of the preliminary deal on delisting was made on Friday.
Stocks like PDD and Baidu, in particular, have been rising, although they both have earnings reports scheduled for early next week. Despite their flaws, Tesla’s EV competitors BYD, Nio, and Li Auto are worth keeping an eye on.
Dow Jones Futures Today
Futures contracts for the Dow Jones, S&P 500, and Nasdaq 100 all begin trading at 6 p.m. ET on Sunday.
As selling pressure persisted Friday night, investors in exchange-traded funds tracking the Dow, S&P 500, and Nasdaq 100 saw minor declines.
Don’t assume that what happens in the Dow futures or anywhere else overnight will repeat itself in the typical trading day.
