Dow Jones Futures: the stock market rally reaches its resistance as the cases of coronavirus increase; Netflix leads actions entering shopping areas


Dow Jones futures fell sharply on Wednesday evening, as did the S&P 500 and Nasdaq futures after a mixed session for the Coronavirus rally. Rising cases of coronaviruses in the United States, China and much of the world weighed on markets, but growing stocks held up relatively well.


Twilio (TWLO), Teradyne (TER), Lam research (LRCX), Alteryx (AYX), Netflix (NFLX), Atlassian (TEAM) and Vertex Pharmaceuticals (VRTX) can be operated.You’re here (TSLA) continues to fight to recover from the 1000 level as the Nasdaq composite attempts to return to 10,000. Meanwhile, the Dow Jones faces resistance at a more difficult level.

Fed chief Jerome Powell, continuing his Congressional testimony on Wednesday, said fiscal policy has helped the economy. But he reiterated that more fiscal stimulus is needed. Meanwhile, coronavirus cases have continued to increase across much of the United States while Beijing has reduced thefts.

The Twilio action offset a short consolidation. The Alteryx, Teradyne and Lam Research shares have broken away from traditional bases. Vertex and Atlassian stocks rebounded from their 10 week lines. The Netflix action extended its rebound by 10 weeks and crossed another port of entry.

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VRTX stock, TEAM stock and Netflix stock are all on IBD Leaderboard, along with TSLA stock. NOW and VRTX shares are on SwingTrader. NFLX, Vertex and Teradyne shares are members of the IBD 50 list.

TEAM is on the long-term executive watch list.

Dow Jones Futures Today

Dow Jones futures fell 1.1% from fair value. Futures for the S&P 500 fell 0.95%. Nasdaq 100 futures fell 0.75%. Although not nearly as volatile as the stock market crash, Dow Jones futures have shown greater fluctuations in recent days. Keep in mind that overnight stocks on Dow and elsewhere do not necessarily translate into actual transactions during the next regular trading session.

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Coronavirus news

Coronavirus cases worldwide have reached 8.40 million, with new daily infections of Covid-19 at or near record levels. The deaths of Covid-19 are 451,000.

In the United States, coronavirus cases have exceeded 2.23 million, with deaths greater than 119,000. The daily trend of new coroanvirus cases has increased, exceeding 25,000 in four of the past six days. California and the southern states are leading the way.

Hospitalizations in Texas for the coronavirus increased by 11% in the last 24-hour reporting period.

However, New York Governor Andrew Cuomo said there are signs that New York City will begin the second phase of its reopening on Monday.

Meanwhile, Beijing canceled most of the flights on Wednesday, one day after the city’s schools closed, to contain a recent coronavirus outbreak.

Brazil, Chile, India and Russia are among the countries with the largest outbreaks.

Coronavirus stock market rally

The recovery in the coronavirus stock market was mixed for much of the session, fading in the middle of the afternoon.

The Dow Jones Industrial Average fell 0.65%, the S&P 500 fell 0.4%, and the Nasdaq composite hung on to a gain of 0.15%. The Dow Jones today reached resistance to its 200-day moving average after clearing it intraday. The S&P 500 rebounded from this key level. The Nasdaq almost recovered 10,000 in the stock market on Wednesday after closing above this level on June 10.

Growth stocks had a good day in the recovery of the coronavirus market.

Among the best ETFs, Innovator IBD 50 (FFTY) rose 0.8%. The iShares Expanded Tech-Software Sector (IGV) ETF closed just below breakeven. The VanEck Vectors Semiconductor (SMH) ETF rose 1.1%. The Teradyne and LRCX shares are both in SMH.

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Tesla Stock Range Limit?

Tesla rose 1% to 991.79 after reaching 1,005 intraday. Since its jump above 1,000 on June 10 when the Nasdaq hit a record above 10,000, the TSLA stock has reached resistance at the level of 1,000. Tesla’s stock is well extended from ‘a purchase point of 869.92, so a consolidation would be perfectly normal. With the resumption of coronavirus cases in the United States and Beijing reimposing Covid-19 restrictions, the stock of Tesla and other growth names of “recovery” could be vulnerable.

Tesla delivery times for orders in the United States have been reduced to one to two weeks for the S models. Models 3 and X have been one to two weeks, implying little or no delay. Model Y delivery times are always four to eight weeks, although actual deliveries may be faster.

Twilio Stock

Twilio shares hit 216.62, but faded to close 0.8% at 211.28. It’s just above a 210.04 buy point after a few weeks of tight action. This short TWLO break, which has elements of a very tight flag pattern, follows a huge profit gap break in early May.

Twilio’s relative strength has hit a record low on this profit gap and is not far from that top now. The RS line, the blue line in the charts below, tracks a stock’s performance relative to the S&P 500 index.

Teradyne Stock

Teradyne stock climbed 1.8% to 78.42, just above a 78.29 cup grab handle, according to MarketSmith analysis. The RS line for the TER title was already at a record level, a particularly bullish sign. Teradyne joins ASML (ASML) and some other manufacturers of chip equipment burst.

Netflix stock

Netflix shares jumped 2.7% to 447.77, clearing a buy point of 445.67. The start of the FANG action in 445.67 is part of a tight three-week schedule, but could also be seen as a handful on a short consolidation. NFLX action rebounded higher from its 10-week moving average on Tuesday.

Vertex Stock

Vertex shares rose 2.3% to 280.09, recovering from its 10-week moving average. The VRTX stock has found support and has rebounded from its 10-week upside in recent weeks. This last movement is actionable, but will it really succeed? Meanwhile, Vertex stock could have an appropriate base by the end of next week.

Atlassian shares

TEAM stock rebounded 2.4% to 176.71, rebounding from its 10-week line. On Tuesday, the Atlassian title rebounded near its 50-day line.

Lam Research Actions

Lam Research stock climbed 2.7% to 313.78, past the point of purchase of 310.10 cups with handles. The RS line for LRCX action is approaching a consolidation summit. But overall, Lam Research has lagged behind major stocks of smart gears such as ASML and even Teradyne.

Alteryx Action

Alyterx shares rebounded 3.6% to 150.99 after dropping to 155.71 intraday. The AYX stock closed below a 151.60 cup grab handle, but aggressive investors could have bought it on a short downtrend line in the handle. The RS line of the data storage software manufacturer evolved laterally for several months.

Alteryx was the IBD title for Wednesday.

Please follow Ed Carson on Twitter at @IBD_ECarson for stock market updates and more.


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