Dow Jones Futures: Market Correction Heading For New Leg Down? Russia’s Ukraine Invasion Continues – Investor’s Business Daily
Dow Jones futures will open on Sunday evening, along with S&P 500 futures and Nasdaq futures. The stock market rally attempt saw losses last week, reversing from key resistance as Russia’s Ukraine invasion continued to roil financial markets.
Russia continues to lose troops and equipment, but is pounding major cities with artillery and bombs, raising Ukrainian civilian casualties. The U.S. is working on ways to get more fighter jets to Ukraine.
While the market rally attempt is still ongoing, the major indexes are starting to tumble toward their Feb. 24 lows. That could mark the third leg of a market correction going back to early January or late November. In addition to the ongoing Russia-Ukraine crisis, the consumer price index this week will offer the latest inflation reading just days before the Federal Reserve meets to begin raising interest rates.
Broadcom (AVGO), Costco Wholesale (COST), Vertex Pharmaceuticals (VRTX), Regeneron Pharmaceuticals (REGN) and Fortinet (FTNT) are five stocks showing bullish action.
AVGO stock and the others listed here are all trading near their 50-day lines, close to possible early entries while working on proper bases. Broadcom and COST stock moved Friday after earnings Thursday night. The relative strength lines for REGN stock and the others here are at or near consolidation or long-term highs. That’s a reflection of their outperformance vs. the S&P 500 index and an especially bullish signal for stocks still in bases.
Just because these stocks are holding up reasonably well right now, that may not continue, especially if the market heads back or below recent lows.
Nvidia stock, which at various times in the past few months had hinted at possible moves, tumbled below its 200-day line on Friday. It’s still above its January and February lows. Advanced Micro Devices (AMD) and Microsoft stock undercut that long-term level on Thursday and lost more ground Friday. Google stock, which hit resistance at the 200-day line this week, is turning south.
Vertex stock, Microsoft (MSFT) and Nvidia (NVDA) are on IBD Leaderboard. Fortinet stock, Microsoft …….