Dow Jones Futures Due: Market Rally Faces Big Test; Apple Leads 4 Dow Stocks In Focus

Dow Jones futures will open Sunday afternoon, along with S&P 500 futures and Nasdaq futures. The stock market rally had support levels last week. Now can the S&P 500 move above its 200-day moving average in the coming days and weeks? Apple (AAPL) may be key.


Apple stock made key highs and rose modestly even as the overall market generally retreated. Like the S&P 500, the iPhone technology titan is coming back towards its 200-day line. A decisive move above that level could present a buying opportunity. But another rejection could present another opportunity to short AAPL stock.

Meanwhile, other components of Dow Jones Boeing (BA), JPMorgan Chase (JPM) and GS have quietly been on significant runs over the past several weeks, helping the Dow outperform the current market rally. Technically BA stock is around a traditional buy point. Goldman Sachs (GS) is forming a deep base and JPM stock still has work to do.

Dow Jones futures today

Dow Jones futures open at 6 pm ET on Sunday, along with S&P 500 futures and Nasdaq 100 futures.

Remember that overnight activity in Dow futures and elsewhere does not necessarily translate into actual trading in the next regular stock market session.

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Stock Market Rally Analysis

Last week, the Dow Jones Industrial Average rose less than 0.1% in last week’s stock market trade. The S&P 500 index declined 0.7% and the Nasdaq composite fell 1.5%. The small cap Russell 2000 gave up 1.75%.

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On Tuesday, November 15, the S&P 500 briefly crossed 4,000, approaching the 200-day moving average. That level is especially important because the benchmark index turned back just 1 point from the 200-day line on August 16, starting another leg of the bear market.

A decisive move above the 200-day line, which would coincide with a downtrend from the January 4 all-time high, would be a powerful sign that the uptrend is more than a bear market rally.

​​​​The S&P 500’s clearance of the 200-day line would also be a positive backdrop for leading stocks, which are struggling near buy points in an elite market.

Meanwhile, the Russell 2000 fell back below its 200-day line last week but would likely retake to a level ahead of the S&P 500. The Dow Jones, buoyed by Boeing, Goldman and JPM stock is comfortably above the 200-day. But if last week’s high was cleared, the Dow would recover to 34,000 and just below its August peak.

The Nasdaq, weighted by aggressive growth, is 8.3% below the 200-day line. A move above last week’s highs was a good first step. Also positive: The 21-day moving average edge was just above the 50-day line on Friday.

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Thanksgiving week isn’t necessarily a great time for a big move in the market. Markets will close on Thanksgiving with a half-day session on Friday. It is likely to be light during the week. The following week ends with a bang. On December 1, investors will receive the October PCE inflation data, along with the November ISM manufacturing index. On December 2nd, the November jobs report is due. That news could have a big impact on Fed rate hike expectations, bond yields and stock prices.

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So it wouldn’t be surprising to see the major indexes trade in a range over the next week or so. There is nothing wrong with a little consolidation for the major indexes and leading stocks.

Apple stock

Apple stock rose 1.1% last week to 151.29, following an 8.2% spike the previous week. Shares held their 50-day moving average, and the 21-day line was set to surpass the 50-day. AAPL stock is only slightly below its 200-day line. The giant Dow flirted with its 200-day on October 28 after earnings. But that was a great opportunity to short, with shares falling in just a few days to their worst close since mid-June.

A decisive move above the 200-day line, possibly clearing the October 28 high of 157.50, would offer early entry into a lower base starting on August 17. But if the Apple stock is reversed lower from that area, it could make a new offer. shortened opportunity.

Apple’s success or failure at the 200-day line could be critical to the S&P 500’s own effort, and vice versa.

Boeing stock

BA stock fell 2% to 173.89, after a 47% run over five weeks. While the aerospace giant Dow Jones reversed lower October.

Technically, Boeing stock is just below the 173.95 cup buy point. But shares are 9.5% above their 200-day line and 19.5% above their 50-day. A break around current levels could create a safer buying opportunity.

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Boeing is expected to turn a profit in 2023, ending four years of losses.

Goldman stock

GS stock slipped 1.55% to 379.20 last week. On a daily chart, shares extend from a 358.72 cup base buy point within a much larger consolidation. On a weekly chart, Goldman stock has a 389.68 buy point from a cup base with a one-year handle, according to MarketSmith analysis. But after a 28% gain over a four-week winning streak, it’s an awfully tiny handle. A longer, deeper handle would be helpful, and the 50 day line would allow the gap to be closed.

The relative strength line is at a four-year high, indicating the outperformance of Goldman stock against the S&P 500. The RS line is the blue line in the charts provided.

JPM stock

JPMorgan stock fell 1.1% to 133.84 last week. That’s after a 29.5% advance over six weeks. Shares are above their 50-day and 200-day lines, but they have work to do. JPM stock could take the right side of a long, deep consolidation, or it could form a bottom.

Read The Big Picture every day to stay in tune with market direction and leading stocks and sectors.

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