Dow futures were little changed late Wednesday, along with S&P 500 futures and Nasdaq futures. The Dow Jones led a stock market sell-off in Wednesday’s session as President Donald Trump threatened to vastly increase the China trade war, with Beijing signaling further retaliation. Microsoft (MSFT), Twitter (TWTR), Okta (OKTA), Urban Outfitters (URBN) and Five Below (FIVE) are all stocks holding up, close to setting up.
The Dow Jones, S&P 500 and Nasdaq composite only gave up a portion of their recent gains. Still, the S&P 500 index and Dow Jones have been moving sideways since late January, with Trump trade war tensions a major factor. The Nasdaq composite hit new highs recently. But the Nasdaq has outperformed thanks to FANG stocks Netflix (NFLX) and Amazon.com (AMZN) as well as software stocks, all relatively resistant to trade woes.
Dow Futures Today
Dow futures rose a fraction vs. fair value. S&P 500 futures edged lower. Nasdaq 100 futures fell slightly vs. fair value. While stock futures foreshadowed Wednesday’s sell-off, how S&P 500 and Dow futures trade overnight often doesn’t translate into regular session action.
Top Stocks Working On Buy Points
Microsoft stock, Twitter stock, Okta stock, Urban Outfitters stock and Five Below stock all are consolidating bullishly after prior breakouts. Microsoft is at the upper end of the 5% chase zone from a prior buy zone, but the others do not yet have buy points. Their relative strength lines, which track the stocks’ performances vs. the S&P 500 index, are all trading near highs.
Microsoft has been consolidating since hitting 102.69 on June 7. Shares closed Wednesday at 101.98. That’s 4.8% above a 97.34 flat-base buy point. If Microsoft stock holds in its current range through Friday, it will have a new flat base, really a base-on-base pattern, with a 102.79 entry.
After a strong run-up from a cup-with-handle breakout in late May, Twitter stock peaked at 47.79 on June 15, and shares have been consolidating. Shares did tumble Monday on a report that Twitter has suspended a huge number of fake or suspicious accounts, but the social network said those won’t affect active-user figures. Shares closed Wednesday at 43.86.
Twitter stock is in the fourth week of a flat base, so it would need to consolidate through next week before it forms a proper buy point.
The 2017 cybersecurity IPO cleared a shallow cup base convincingly in early May, then vaulted to an intraday peak of 61 on June 7. That record high came a day after reporting quarterly earnings. But Okta stock reversed that day to close down 6% at 49.12. Shares began to consolidate, finding support at its 50-day line by late June. Shares closed Wednesday at 51.16.
Okta stock is working on a cup base, which would be finished by the end of week. If Okta rallies strongly in volume from the 50-day, that would offer a buying opportunity.
Urban Outfitters Stock
The young adult apparel retailer initially cleared a flat base back in February, but didn’t clear the buy zone until early April. Urban Outfitters stock eventually advanced to 48.24 on June 13. Shares have been consolidating since then, slightly above their 50-day line but hitting 10-week support.
A strong stock rally from the 10-week line could trigger a buying opportunity. Alternatively, if Urban Outfitters stock treads water through Friday, it will have a 48.34 flat-base entry. Shares finished Wednesday at 45.40.
Five Below Stock
The teen-centric specialty discounter vaulted higher soon after its quarterly earnings in early June, peaking at 103.99 on June 13. Shares are close to finishing a short flat base, closing Wednesday at 99.55.
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