Dow Jones Futures Rally: Is the stock market correction over? What to do now

Dow Jones futures rose 100 points after the stock market fell with strong gains on Monday. Apple is approaching new heights, while Tesla stock found support at a critical level.


On Monday, the Dow Jones Industrial Average rose 1.9 percent. The S&P 500 rose 1.2 percent, while the Nasdaq rose 0.9 percent. Small-cap Russell 2000 advanced 2.05%.

Among the Dow Jones executives, apple (AAPL) climbed 2.15%, while Microsoft (MSFT) rose 1% in today’s stock market. Nike (NKE) remains below a buy point after Monday’s modest loss.

Head of electric vehicles Tesla (TSLA) fell 0.6% on Monday after reducing heavy losses. EV peer Rivian (RIVN) rose 11.6%, while Lucid group (LCID) screen 5.1%. Chinese EV leaders Li Auto (LI) and Xpeng engines (XPEV) made up for some of Friday’s big losses.

Among the best stocks to buy and see, The Endeavor group (EDR), NXP Semiconductors (NXPI) and Pfizer (PFE) are in or near new shopping zones. Recent weaknesses in the stock market suggest that investors should develop watch lists, and for the time being avoid making new purchases.

Microsoft and Tesla are IBD Leaderboard shares. NXP was put in the spotlight in this week’s Stocks Near A Buy Zone story. Endeavor is featured in last week’s IPO Leaders story.

Dow Jones Futures today

After the stock market closed on Monday, Dow Jones futures rose 0.3% against fair value, while S&P 500 futures rose 0.2%. And Nasdaq 100 futures also rose 0.2%. Keep in mind that trading in Dow Jones futures and elsewhere does not necessarily translate into actual trading in the next regular trading session.

Overview of the US stock market today

Index Symbol Price Gain / loss % Change
Dow jones (0DJIA) 35227.89 +647.81 +1.87
S&P 500 (0S & P5) 4591.76 +53.33 +1.18
Nasdaq (0NDQC) 15225.15 +139.68 +0.93
Russell 2000 (IWM) 218.97 +4.26 +1.98
IBD 50 (FFTY) 44.40 -0.28 -0.63
Last updated: 16:36 ET 12/6/2021

Among exchange-traded funds, Innovator IBD 50 (FFTY) fell 0.6% on Monday. Nasdaq 100 tracker Invesco QQQ Trust (QQQ) rose 0.8%. And the SPDR S&P 500 ETF (SPY) rose 1.2%.

Is the stock market correction over? What to do now

The stock market showed strong gains on Monday, when the major stock indices picked up after Friday’s weakness. Monday was day 1 of a new rally attempt on Nasdaq, so the market correction is not over yet. One day is no trend. On day 4 and later, you will see the index rise sharply in higher volumes than the previous session. It will signal the start of a potential uptrend.

Stock Market ETF Strategy and How to Invest

Although no rally has ever started without one, not every follow-up day is successful. This is why you do not want to jump back into the market 100% on a follow-up day. You will start buying in stages and let the rally show itself. And don’t just buy any stock on a follow-up day. Make sure you buy top growth stocks that break out previously correct buy points in large volume.

Currently, you can find many of the next trend leaders while the market is still correcting, which can be done by using the relative strength line. The RS line measures a share price development vs. S&P 500. If the stock surpasses the wider market, the RS line angles upwards. If a stock performs worse than the broad market, the line will point lower.

The RS line is the blue line on all IBD charts as well as in the IBD MarketSmith.

On Monday, The Big Picture commented: “After last week’s shellacking, the stock market seemed to be coming back. The big indices delivered broadly. Monday’s action also offered several sections to the script on Wall Street’s 2021 history – a script that might deserve this title: ‘ Rotate, sectors, rotate! ‘”

The stock market outlook was downgraded on Friday, so it’s an important time to read IBD’s The Big Picture.

Five best Dow Jones stocks to see now

Dow Jones shares to see: Apple, Nike

At the end of Monday’s session, Apple shares moved further past a buy point of 153.27 from a cup of handles, according to IBD MarketSmith chart analysis, and have expanded. The buying zone of 5% peaked at 160.93. Apple shares rose 2.15 percent on Monday.

Retail leader Nike failed to gather in line with the major stock indices on Monday, falling 0.8%. Nike shares are approximately 3% below the cup base’s buying point of 174.48.

Shares to buy and look at: Endeavor, NXP, Pfizer

IPO leader and Ultimate Fighting Championship owner Endeavor Group continues to build a cup-with-handle base with a buyout score of 31.80, according to IBD MarketSmith chart analysis. The shares are about 5% away from the new listing. The stock rose 2.7 percent on Monday.

The stock’s relative strength line is making solid progress and is at its highest level since the beginning of October. The RS line measures a share price development vs. the broad market. A strengthening RS line during periods of market weakness indicates leadership potential.

Chipleader NXP Semiconductors tries to break past a buying point of 227.60 in a cup-with-handle base, but closed below the entrance in the middle of Monday’s fall of 1.25%.

Drug giant Pfizer gave up a buy point of 51.96 in a cup base after Monday’s decline of 5.1%. The buying zone of 5% tops with 54.56.

Join IBD experts as they analyze leading stocks in the current stock market correction on IBD Live

EV shares: Li Auto, Xpeng, Lucid Motors, Rivian

Li Auto triggered a 7% -8% loss-reducing sales rule below a cup-with-handle base’s buy point of 34.93 after Friday’s heavy loss. Shares jumped above 7%, finding support around the long-term 200-day moving average.

Xpeng Motors triggered the return signal from a buy point of 48.08 during last week’s decline. Investors should sell the growth stock if it falls back near the point of purchase after it has achieved a gain of more than 10%. Try to sell before all winnings are deleted. XPEV shares ended Monday above their 50-day support level. Wait until the stock forms a new base, which will offer a new listing.

Lucid Motors’ shares reduced losses on Monday, but still fell by more than 5% after the company said the Securities and Exchange Commission had requested documents related to an investigation into the blank check agreement with Churchill Capital. The LCID share is still expanded to 28.49 points in a cup with handles, but large gains have diminished.

Hot IPO Rivian rose 11.6% on Monday after a series of strong analyst ratings. Rivian was initiated with an outperform rating and 130 price targets by Wedbush. And Morgan Stanley initiated Rivian with an overweight rating and a price target of 147.

RIVN shares closed on Monday with approximately a 35% discount after the listing. The decline is a potential positive for investors who remain disciplined and wait for a listing base to be formed before considering a purchase. The latest weakness is the start of Rivian’s first base formation, and Monday’s strong gain was a step in the right direction.

Tesla shares

Tesla shares reduced major losses to 0.6% Monday after the SEC reportedly looked at Tesla after a whistleblower revealed solar panel failures, Reuters reported. The shares extended a three-day losing streak, but they found much-needed support at the critical 50-day moving average.

The stock traded as high as 1,243.49 on November 4, but the stock ended Monday with about 19% of its 52-week high.

TSLA shares remain sharply above 764.55 buy points in a cup with handles, as well as previous entries of 700.10 and 730. The chart also showed an alternative entry of 900.50. Tesla shares are likely to form a new base, but there is no new buying point yet.

Dow Jones executives: Microsoft

Among Dow Jones shares, software giant Microsoft rose 1% on Monday, taking a four-day losing streak. The stock found support around its 50-day line.

On October 18, the Microsoft stock broke past a flat base’s buying point of 305.94. The buy zone of 5% peaked at 321.24, so the stock is expanding.

Be sure to follow Scott Lehtonen on Twitter at @IBD_SLehtonen for more on growth stocks and the Dow Jones Industrial Average.


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