Dow Jones futures fell solid Sunday, along with S&P 500 futures and Nasdaq futures. President Donald Trump said Sunday that the United States is "exactly where we want to be" as China's trade war escalates. But today's stock market collection is under pressure. Despite Friday's decline, the Dow Jones, S & P 500 index and the Nasdaq composite experienced sharp weekly losses. Apple (AAPL) was a key loser, with Apple stock falling below the point of purchase. Meanwhile, Advanced Micro Devices (AMD) has remained good. AMD Stock, Twitter (TWTR) and Catch Stock Facebook (FB) has all new buying points.
Dow Jones Futures Today
Dow Jones futures withdrew 0.6% against fair value. S & P 500 futures dropped 0.6%. Nasdaq 100 futures withdrawn 0.7%.
Remember that takeover in Dow futures and elsewhere does not necessarily translate into actual trading in the next ordinary stock market session. Dow Jones futures did not predict Friday's morning sales or the afternoon session.
Current Stock Market Collection
The current stock market rally sold last week after President Trump tweeted on Sunday May 5, as he planned to hike tariffs of $ 200 billion worth of Chinese goods from 10% to 25%. Trump made his threat Friday morning. Trump also takes early steps to impose 25% on $ 325 billion of Chinese goods not currently taxed.
The large averages originate from steep intraday losses to close slightly higher Friday trading. But for the week, Dow Jones fell 2.1%, below its 50-day line. The S&P 500 index withdrew 2.2% and the Nasdaq composite 3%, after both teaching their 50-day average, but managed to close this level of support.
Among the best ETFs, Innovator IBD 50 ETF (FFTY) went just over 2%. IShare's expanded Tech-Software Sector ETF (IGV) fell 1.9%, although many of the best software stores boast strong gains or other bullish action. VanEck Vectors Semiconductor ETF (SMH) nearly 6%, reflects a large Intel (INTC) warning and chip sector exposure to a wider trade war in China.
China's trade war: How does it come? ?
Despite Friday's positive measures, China's trade war will probably continue to weigh in today's stock market context. It's a big shift from the hope that a Chinese trade agreement is a stock market winner.
A key issue for the stock market rally is how hot will China's trade war be. Trump, who famously said the trade wars are "easy to win", Sunday Sunday that "we are right where we want to be."
We are exactly where we want to be with China. Remember they broke the deal with us and tried to renegotiate. We accept thousands of dollars in tariffs from China. Product buyers can make it to themselves in the United States (ideally) or buy it from non-tariff countries …
– Donald J. Trump (@realDonaldTrump) May 12, 2019
Trump on Saturday tweeted that Beijing should "act now" or face tougher trading conditions for China later.
China has promised to render, but has so far not taken any action or signaled what that action might be. After previous Trump tariff rallies, China reacted immediately. Chinese leaders are probably worried about a still fragile economy.
Apple stock, a member of Dow Jones, S & P 500 and Nasdaq composite, dropped 6.9% last week. The iPhone manufacturer is exposed in several ways for an increasing China trade war. Stocks closed during the 197.79 cup-with-handle purchase point and deleted an 8.9% advance. The Apple stock fell on Friday, despite the stock market rally, even though it emerged from its 50-day and 200-day lines.
The 197.79 purchase point is still valid, although investors should notice serious concerns with the Apple stock map back to breakout. The base was relatively deep at 39%. Patterns that are 40% or more deep are less likely to work. The center of the handle was just above the center of the base. Ultimately, the Apple stock broke down on volume, suggesting lack of institutional support.
Although the Apple stock may not be a bargain for now, it's still good to see it go well, given its influence on Dow Jones and other great averages.
The AMD share dipped less than 1% last week to 27.96, which constituted the chip sector and broader stock market, and jumped back from its 50-day line. It now has a flat base with a 30.06 point of purchase, within a very deep – 53% consolidation. You can see the flat base as a new handle in the larger consolidation, but it's the same point of purchase, and the AMD stock has shown tighter actions recently.
The social network giant pulled 3.65% last week to 188.34, although the decline was in below average volume. The Facebook share already had a 198.58 cup-for-shopping buy point on a daily chart after last week. But the handle didn't show up on a weekly chart when the Facebook share didn't have much of a shakeout. But last week's Facebook stock image created more of a shakeout for weak holders.
One concern for Facebook, as well as Apple and the AMD stock, is that growth has weakened recently. But investors are aiming for better growth in 2020.
Facebook is still facing regulatory risk. On Sunday, Kamala Harris, D-Calif., Said that Facebook had to be broken up, echoing conversations from another democratic presidential candidate, Sen. Elizabeth Warren, D-Mass.
Is Facebook A Buy? Here's what deserves, Stock Chart Show
Twitter stock fell 5.7% last week, completed a handle in an 11 month cup base. Twitter share purchase point is 41.02. One concern is that the base is 45% deep. Unlike Facebook stocks, Twitter shares ate strong earnings growth of 131% in the quarter.
As with Apple stock, just because Twitter stock, Facebook and AMD have buying points, doesn't mean you have to take a breakout. The stock market rally is under pressure, with China trading news likely to shift momentum back and forth in the near future. Investors should be cautious about making purchases and being ready to make a profit.
Please follow Ed Carson on Twitter at @IBD_ECarson for stock market updates and more.
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