Dow Jones futures were little changed early Wednesday, along with S & P 500 futures and Nasdaq futures. In Tuesday's weak stock market period, Okta (OKTA) broke out strongly, as leading software actors and especially cyber security games went well. Apple (AAPL) reversed slightly lower in heavy volume but remained in the buying zone, while Advanced Micro Devices (AMD) fell back below the entrance.
Both Apple Stocks and AMD Stocks
Dow Jones Futures Today
Dow Jones futures, S & P 500 futures and Nasdaq 100 futures were all a bit over break-even. Keep in mind that takeover action in Dow futures and elsewhere does not necessarily translate into actual trading in the next ordinary stock market session.
Current Stock Market Collection
Due to concerns about a growing trade war between the US and the EU, the major averages went back. Dow Jones lost 0.7% while the S & P 500 index and the Nasdaq composite draw 0.6%. The small size Russell 2000 slid 1.2%.
The Apple stock – which had provided some intraday support to Dow, S & P and Nasdaq – closed 0.3%. AMD tumbled 4.5% when VanEck Vectors Semiconductors ETF (SMH) dropped 1.1% after seven quick gains.
A top ETF in today's stock market collection, iShares Expanded Tech Software Sector ETF (IGV) dipped 0.1%, with large weights Microsoft (MSFT) and Salesforce. com (CRM) message lower. But many of the best software stores in today's stock market tradition showed positive measures. Zscaler (ZS), which fell almost 9% last year, rose 2.3% in bullish analysis comments for the cyber security name. Fortinet (FTNT) advanced 1.4%, near a point of purchase. ServiceNow (NOW) continued to find support at its 50-day time, while working day (WDAY) moved back over the main support.
Octa Stock Breakout
Octa stock shot up 5.7% to 92.65 Tuesday, clearing an 87.82 flatbase purchase point in a base-on-base formation. Volume spiked 120% above normal, a sign of institutional support.
The relative strength line hit a new high with Octa stock, a bullish sign. The RS line, the blue line in the charts below, tracks a stock's performance vs. The S&P 500 index.
The octa stock sold hard a couple of times in early March, but then traded close to its rising 50-day line
Shares in the 2017 IPO are now slightly expanded from the 5% hunting zone.
Oct share was added to IBD SwingTrader on Tuesday.
The biggest mistake for the 2017 cybersecurity IPO, like the 2018 IPO Zscaler, is that Octa is unprofitable. But income growth is strong.
Busy with a hopeful analyst note on China iPhone trends, Apple shares rose 1.7% intraday to 202.85. But stocks reversed to close 0.3% at 199.50 in above average volume. Don't do too much of Tuesday's action. Apple stocks fell less than the big indices and held over their 197.79 cup-with-shop buying position.
Nevertheless, Apple broke stock in Monday in below average volume. Through the nine-day winning knit, the trade was easy, except for the first day's fractional volume increase.
Meanwhile, the center of the handle was just above the midpoint of the base.
The AMD stock tumbled 4.5% to 27.24 Tuesday, back during a 28.21 cup-by-handled buying point removed last week. The place of purchase is still valid, but it was not encouraging. As IBD noted at AMD's breakout, the base was more than 50% deep, reducing the odds of success.
Several other recent chip breakouts, including Microchip Technology (MCHP) and ASML ASML
Wait for better AMD, Apple Stock Bases?
An opportunity for AMD stock and Apple stock is that they will form short, tighter bases within, beside or just over their current deep consolidations. It can offer safer listings to investors.
Octave layers previously knocked out of a messy, deep base before being tightly consolidated. Many other leaders have formed base-on-base or base-within-a-base patterns in recent weeks.
Please follow Ed Carson on Twitter at @IBD_ECarson for stock market updates and You can also:
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