The Dow Jones index rose slightly on Monday morning, including Standard & Poor’s (S&P) 500 Futures and Nasdaq Futures. Last week, the stock market rebounded to break the resistance level and resumed the confirmed upward trend under the hope of China’s trade. Apple will be the focus this week as it introduces the new iPhone and Apple Watch models. Apple stocks are close to the buying point, along with Verizon stock, Microsoft stock, and Nike stock. Also, Visa stock is in a buy zone. Visa (V) and Microsoft (MSFT) have strong Relative Strength (RS) lines. Nike (NKE) and Apple (AAPL) RS lines for quite some time have been range bound. The Verizon Communications (VZ) RS line has been declining for a long time. The RS line tracks the performance of the stock against the Standard & Poor’s 500 Index. This is an easy way to find laggards and leaders in any kind of stock market. It is bullish, especially when the relative strength line moves ahead or along with a stock breaking out.
Dow Jones Futures rose 0.2% with respect to fair value. Nasdaq 100 Futures and S&P 500 Futures climbed 0.2%. So, in the next session of the regular stock market, the overnight action in Dow Futures and anywhere else do not translate into actual trading. The Dow Jones futures have been impulsive many times in recent weeks due to overnight headlines of China trade. Though Ms. Carrie Lam, the CEO of Hong Kong withdrew the extradition bill that triggered the demonstrations a few months ago, protests in Hong Kong continued on weekend. Also, due to the escalation of China trade war, China exports, unfortunately, fell sharply in August with decrease in shipments to the US.
The stock market rebound last week was more optimistic amid the news of the new China trade talks which will be held in early October. The Dow Jones and other major stock indexes broke the resistance level of average moving at the 50-day. The Industrial Average of Dow Jones rose 1.5%, while the Nasdaq Composite and the S&P 500 index rose 1.8%. Last week, several top stocks broke out along with archrival Mastercard (MA) and Visa stock. As the stock market regained momentum, many companies are setting up. The investors should be in buying mode owing to the better position of Dow Jones and the rally of stock market.