On Monday, the Dow Jones Industrial Average moved up 1.9%. The S&P 500 rose 1.2%, while the Nasdaq rallied 0.9%. The small-cap Russell 2000 advanced 2.05%.
Electric-vehicle leader Tesla dropped 0.6% Monday after paring sharp losses. EV peer Rivian surged 11.6%, while
Among the top stocks to buy and watch,
Dow Jones Futures Today
ahead of the stock market open Tuesday,
Among exchange traded funds, Innovator IBD 50 moved down 0.6% Monday. Nasdaq 100 tracker
Is Stock Market Correction Over? What To Do Now
The stock market posted strong gains Monday, as the major stock indexes rebounded from Friday’s weakness. Monday was Day 1 of a new rally attempt on the Nasdaq, so the market correction isn’t over yet. One day doesn’t make a trend. On Day 4 and later, you are looking for the index to rise sharply in higher volume than the previous session’s. That would signal the start of a potential uptrend.
While no rally has ever begun without one, not every follow-through day succeeds. That’s why you don’t want to jump back in the market 100% on a follow-through day. You want to start buying in stages and let the rally prove itself. And don’t just buy any stock on a follow-through day. Make sure you’re buying top growth stocks that are breaking out past correct buy points in heavy volume.
For now, you can find many of the next uptrend’s leaders while the market is still correcting, which can be done by using the relative strength line. The RS line measures a stock’s price performance vs. the S&P 500. If the stock is outperforming the broader market, then the RS line angles upward. If a stock is performing worse than the broad market, then the line will point lower.
On Monday, The Big Picture commented: “After last week’s shellacking, the stock market looked due for a bounce. The major indexes delivered broadly. Monday’s action also offered more paragraphs to the script on
Dow Jones Stocks To Watch:
At the end of Monday’s session,
Retail leader Nike failed to rally in line with the major stock indexes Monday, moving down 0.8%. Nike shares are about 3% below their cup base’s 174.48 buy point.
Stocks To Buy And Watch: Endeavor, NXP,
IPO Leader and
The stock’s relative strength line is making solid upward progress and is at its highest level since early October. The RS line measures a stock’s price performance vs. the broad market. A strengthening RS line during periods of market weakness indicates leadership potential.
Li Auto, Xpeng, Lucid Motors, Rivian
Hot initial public offering Rivian surged 11.6% Monday after a number of strong analyst ratings. Rivian was initiated with a outperform rating and 130 price target by Wedbush. And Morgan Stanley initiated Rivian with an overweight rating and a 147 price target.
RIVN shares closed Monday about 35% off their post-IPO highs. The decline is a potential positive for investors remaining disciplined and waiting for an IPO base to form before considering a purchase. The recent weakness is the start of Rivian’s first base formation, and Monday’s strong gain was a step in the right direction.
Shares traded as high as 1,243.49 on
TSLA shares remain sharply above a 764.55 buy point in a cup with handle, as well as earlier entries at 700.10 and 730. The chart also showed an alternate entry at 900.50.
Dow Jones Leaders: Microsoft
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