Dow Jones Futures Fall Target-Led Sale-Off; There is a 90% chance of doing this at a market rally

Dow Jones futures fell sharply with the S&P 500 futures and Nasdaq futures early Thursday, but partially offset the losses. The stock market rally sold off sharply on Wednesday, large-scale The goal (Digit) Revenue raised major concerns about retailers, related sectors and the broader economy amid hot inflation and weak demand.




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Wednesday’s sharp sell-off comes at the start of key index numbers The following day Glowing coarse signals to confirm the new stock market rally. Thursday futures suggest that key indices may lower or test their rally lower on May 12th. The reduction will end the short-term rally.

Late Wednesday, Cisco systems (CSCO) Announced mixed results. Cisco’s revenue surpasses Q3’s last fiscal year’s, but earnings failed Led less than the current Q4, Citing supply chain issues from Lockdowns, China. CSCO shares fell 11% at the start of Thursday. Arista Networks (On the sides) And other related stocks fell sharply.

Fertilizer and lithium game Chilean Chemical and Mining Association (SQM) Q1 EPS was reported 973% higher against the one-year high earlier Thursday, with sales exploding 282% to $ 2.02 billion, both crushing views. SQM stock rose 4% before opening, indicating a breakout. Shares were up 0.4% at 90.21 on Wednesday after hitting 93.14 intraday, hitting a low of 90.97. Buy point.

The video embedded in this article analyzed market sales and TGT stocks on Wednesday, Northrop Krumman (NOC) And Broadcom (AVGO)

Bad news for targeted revenue retailers

Target revenue fell 41%, much higher than expected. The retailer blamed shipping costs and a shift from consumer TVs and other preferred products. The target sees marginal pressures throughout the current fiscal year. It came a day later Walmart (WMT) Quoted higher costs for goods, shipping and labor, missed in EPS and less guided. At the time, investors may have thought or relied on Walmart’s woes as a company, but Target’s results showed a much broader problem.

The target stock was down 25% at 161.61. Walmart fell 6.8% after falling 11.4% on Tuesday. Both are very low after 2020.

If Walmart and Target are struggling in the current economic climate, it may not be good for other discounters and retailers and the general public.

Dollar tree (DLTRIt fell 14.4% after falling 3.2% on Tuesday. The DLTR stock was good, but fell below its 50-day low on Tuesday and crashed in its 200-day line. Costco Wholesale (Cost) Already lost more than 12% after circling around a breakout and falling below the major moving average in recent weeks. Both the dollar tree and the COST stock report next week.

Buy the best (BBY), Which fell 10.5% at the start of Thursday to its lowest level in two years.

Trucking companies, Tesla, Apple hit the stock

JP Hunt Transport Services (JBHT) Sold 9%, falling from its 10-week line. As consumer demand weakens, trucking companies may see weaker demand and are struggling to keep up with rising diesel fuel prices.

Apple shares fell 5.6% to 140.82, down from a six-month low as consumer preference spending warned by the Dow Jones Tech Titan. Over the past several weeks, iPhone contract maker Foxconn and Taiwan Semiconductor (DSM), Which produces chips Apple (APL) And many others, warned of the need for a weaker smartphone. AAPL shares are on track for the eighth week in a row.

Tesla shares fell 6.8% to 709.81, the lowest level since August. Weak consumer preference in theory could affect Tesla’s demand for high-end electric vehicles, overall vehicle production is very low, and supply is still a key factor. Tesla (DSLA) Is under pressure with Shanghai plant launch issues and other high-profile development names that CEO Elon Musk is ongoing. Twitter (TWTR) Acquisition History. Twitter shares fell 3.8% to 36.85, two months down and below Musk’s $ 54.20 acquisition price.

Moreover, the launch of the S&P 500 ESG Index by Tesla, often in the wake of corporate cultural issues, provoked Musk’s angry tweets.

Meanwhile, the U.S. National Highway Traffic Safety Administration is investigating whether an automated pilot may have been involved in the Tesla Model S crash earlier this month. The NHTSA examines dozens of accidents involving automated pilots.


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Dow Jones Futures Today

Dow Jones Futures fell 0.85%. Reasonable value. The S&P 500 futures are down 0.8%. Nasdaq 100 futures down 0.9%. They are in the worst conditions of the morning. Cisco stock Dow Jones, S&P 500 and Nasdaq stock. Many networking and hardware stocks also lost ground.

The 10-year Treasury yield is down 5 basis points to 2.84%.

U.S. crude oil prices fell more than 1%. The future of petrol is down 3%.

Overnight action Dove futures Elsewhere there is no need to translate it into the next regular real trade stock market Session. But if the futures remain open, the Dow Jones may fall below its May 12 rally and close the S&P 500. The Nasdaq Composite is not far from its May 12 low.


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Stock market rally

The stock market surge fell sharply on Wednesday.

The Dow Jones Industrial Average fell 3.6% on Wednesday Stock market trading. The S&P 500 index slipped 4%. The Nasdaq compound fell 4.7%. Small-cap Russell 2000 gave 3.5%.

US crude fell 2.5% to $ 109.59 a barrel from modest gains. Petrol futures fell more than 5%.

The 10-year Treasury yield is down 8 basis points to 2.89%.

In the middle The best ETFsInnovator IBD 50 ETF (FFTY) Slipped 3.8%, while Innovator IBD Breakout Opportunities ETF (Boat) Lost 3.9%. iShares Extended Technology-Software Industry ETF (VATGave 4%. WANEX Vectors Semiconductor EDF (SMHFell 4.8%.

SPDR S&P Metals & Mining ETF (XME) Fell 4.15% and the Global X US Infrastructure Development ETF (Pavement3.6% retreated. US Global Jets ETF (JETS) Decreased by 3.4%. SPDR S&P Homebuilders ETF (XHB) Fell 5.5%. Energy Selection SPDR ETF (XLE) And Financial Examination SPDR ETF (XLFLost 2.75%. Health Care Selected Sector SPDR Funding (XLVFell 2.6%

SPDR S&P Retail ETF, which includes key targets Stock and Walmart, fell 8.3% to its lowest level since December 2020.

Represents more speculative story stocks, ARK Innovation ETF (ARKKFell 4.4% and ARK Genomics ETF (ARKG) TSLA is the No. 1 holding of 4.7% of Ark Invest’s ETFs.


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Market Rally Analysis

When you get a brand new car, do not expect problems when you drive a lot of vehicles. But if you do, you can eat a lemon. On Tuesday, key indices a The following dayThe new stock market confirms the boom.

But on Wednesday, key indices fell, leaving Tuesday with strong gains and more.

The rising costs for a vulnerable consumer and business are a harsh mix for retailers and makers of preferred products. With more than two-thirds of consumer spending in the US economy, the risk of a sharp downturn in the economy increases as the central bank seeks to reduce inflation. Aggressive Fed rate hikes can cause severe pain. But the alternative, allowing inflation to remain high, clearly affects demand as well.

Excluding the reasons for the sale, the technical action is clear. Not every The following day Jobs, and Wednesday’s action was a rough signal.

Key indices closed below their FTD lows. Eric Krul, co-author of “The Lifecycle Trade”, says his research shows that when key codes do this, the market rally has a 90% chance of ultimately failing.

The contradictions in this case may be even worse. The Dow Jones and S&P 500 created new 52-week lows on Wednesday, and the Nasdaq is not far from doing so.

However, the market rally will still be in effect until the key indices reduce the start of their rally, in which case the May 12 intraday low. The Dow Jones in particular is on the verge of collapse. Another level for the S&P 500, along with the Nasdaq, will definitely push the benchmark index into a bear market.

Look at the weekly chart of the main codes, it is difficult to see the rally. The Dow, S&P 500 and Nasdaq are on track to extend the long weekly losses.


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What to do now

Wednesday’s sell-off is good to slowly step into the rally of the newly confirmed stock market. This was especially true in the current market rally as key indices and some stocks are below the key moving average.

Investors who bought shares or ETFs in the FTD on Wednesday should increase the volume or exit.

Continue to work on your watchlists. Focus on stocks with strong relative strength. But a strong RS line is not a green light to buy a stock, especially in a weak market.

The sale of DLTR shares on Wednesday – and in a few weeks Apple – shows how good the shares are as long as they are. So wait until a strong market signal to buy a stock and be ready to exit.

According to The big picture Every day the direction of the market and the leading stocks and sectors must be consistent.

Follow Ed Carson on Twitter @IBD_ECarson For stock market updates and more.

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