Dow Jones futures will open Sunday evening, along with S&P 500 futures and Nasdaq futures.
The stock market eked out slim-to-modest gains, ending weekly losing streaks. The major indexes reversed slightly higher Friday as President Donald Trump signaled "flexibility" on upcoming reciprocal tariffs. Stock market rally attempts are still intact for the major indexes. Bu there's been no follow-through day to confirm the new uptrend though..
Spotify, Rubrik, Netflix, Okta and MercadoLibre are growth stocks that are holding up relatively well, perhaps forging areas of resistance that could offer entries.
To be clear, investors should be looking at a lot of sectors, with insurance, exchange plays, some aerospace and biotech stocks. It's unclear what will lead in the next rally.
Tesla stock extended a weekly losing streak, but is trying to find its footing. Tesla rival BYD will report fourth-quarter earnings early Monday.
Rubrik stock is on the IBD 50. Netflix stock is on the IBD Big Cap 20.
Dow Jones Futures Today
Dow Jones futures open at 6 p.m. ET on Sunday, along with S&P 500 futures and Nasdaq 100 futures.
Remember that overnight action in Dow futures and elsewhere doesn't necessarily translate into actual trading in the next regular stock market session.
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Stock Market Rally
The stock market rally attempt saw slim gains for the week, aided by upside Friday reversals.. Trump said Friday intraday that "there'll be flexibility" on the so-called reciprocal tariffs that he'll impose on April 2. Federal Reserve Chief Jerome Powell on Wednesday downplayed the economic risks from Trump tariffs after Wednesday's Fed meeting, with policymakers predicting two rate cuts this year.
The Dow Jones Industrial Average climbed 1.2% in last week's stock market trading, just below its 200-day line after hitting resistance there multiple times during the week. The S&P 500 index advanced 0.5%, still modestly below its 200-day. The Nasdaq composite edged up 0.2%, well below its 200-day line. The small-cap Russell 2000 gained 0.6%.
The Invesco S&P 500 Equal Weight ETF climbed 0.7%, but hit 200-day resistance like the Dow industrials.
The market rally attempt is still in force, with all the major indexes holding above recent lows. A follow-through day could happen at any time
The 10-year Treasury yield fell six basis points to 4.25%.
U.S. crude oil futures climbed 2.05% to $68.28 a barrel last week.
ETFs
Among growth ETFs, the Innovator IBD 50 ETF rose 2.1% last week. The iShares Expanded Tech-Software Sector ETF gained 1.5%, with Rubrik stock a holding. The VanEck Vectors Semiconductor ETF fell 0.8%.
ARK Innovation ETF rallied 4.6% last week and ARK Genomics ETF advanced 2.4%. Tesla stock is still the top position across ARK Invest's ETFs. Cathie Wood also has a small stake in BYD.
SPDR S&P Metals & Mining ETF declined 0.55% last week. The Energy Select SPDR ETF popped 3.1% and the Health Care Select Sector SPDR Fund was up 1.1%. The Industrial Select Sector SPDR Fund rose 0.9%. The Financial Select SPDR ETF popped 1.9%.
Time The Market With IBD's ETF Market Strategy
Stocks To Watch
Spotify stock popped 4.4% last week to 600.04, building the right side of a V-shaped consolidation that needs another week to be a proper base. The music-and-podcast streaming giant reclaimed its 50-day moving average on March 14. On a daily chart, Spotify has a de facto handle entry of 604.11. Notably, the relative strength line is right at highs even with SPOT stock itself some distance from its peak.
Rubrik stock fell 3.5% last week to 68.16, but after soaring nearly 28% to clear the 50-day line on March 14 following strong quarterly results and guidance. Shares fell back below its 50-day line on Friday. RBRK stock has a de facto handle buy point of 72.41 in a too-short base. The cybersecurity firm is still losing money but revenue growth is accelerating.
Netflix stock gained 4.6% to 960.29 for the week, pausing for the past few days, closing just above its 50-day and 21-day line. An emerging consolidation is taking place. A move above last week's high of 968 would offer an early entry.
Okta stock climbed 1.1% to 113.74 last week, trading around a 114.50 consolidation buy point, according to MarketSurge. Shares have forged a three-week-tight with a 116.96 entry, which could also be treated as a high handle. The cybersecurity firm hit that level after soaring on earnings.
MercadoLibre stock gained 3.7% to 2,095.27, above its 21-day and 50-day lines. The Latin American e-commerce and payments giant is working on a new consolidation next to the top of a double-bottom base. A move above the March 17 high of 2,124.76 would offer an early entry.
All five growth stocks have high average true ranges, which means they're prone to big intraday daily moves. In the current environment, the risk of big losses quickly is high. Right now, IBD recommends focusing on stocks with ATRs of no more than 3%. NFLX's ATR is 3.89%, which isn't too bad, but MELI is at 4.48%, OKTA 5.4%, SPOT 5.63% and RBRK at 7.52%.
But, in a confirmed market rally, investors could take on higher-ATR stocks as the risk-reward dynamic improves.
Tesla Tries To Halt Slide; Earnings Due For Fast-Charging BYD
Tesla Stock
Tesla stock extended a losing streak to nine weeks, off 0.5% to 248.71. But it's held above its March 11 lows and is riding a three-day win streak, jumping 5.3% on Friday. Still, TSLA stock is well below its 200-day and 50-day lines as analysts slash delivery and earnings estimates.
China EV rival BYD is set to release Q4 results early Monday. Last Monday, BYD unveiled a new superfast charger, a game-changer for the EV business. In February, BYD announced it was rolling out driver-assist systems standard across its lineup, forcing many China rivals to follow suit. BYD stock shot up to a fresh high last week, but slashed weekly gains on Friday.
What To Do Now
The stock market is trying to find its footing, but hasn't shaken off the correction despite the ongoing rally attempt.
If you want to take some pilot positions in some stocks with strong relative strength, perhaps topping some key levels, that's OK. But have your exit strategy in place. Cash is still a great place to be.
Even if there is a confirmed market rally in the coming days, add exposure gradually. There's a risk of a failed FT would be high, while it's unclear which stocks and sectors will lead the next uptrend.
So have a broad watchlist, updating that regularly.
Read The Big Picture every day to stay in sync with the market direction and leading stocks and sectors.
Please follow Ed Carson on Threads at @edcarson1971 and X/Twitter at @IBD_ECarson for stock market updates and more.
