Dow Jones Futures: Market Woes Intensify As DocuSign Craters, Apple, Tesla At Key Levels; Bitcoin Whipsaws

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Dow Jones futures volition unfastened Sunday evening, on with S&P 500 futures and Nasdaq futures. The terms of Bitcoin and Ethereum plunged Saturday, the latest motion of a "risk-off" mindset hitting fiscal markets. But cryptocurrencies rebounded by Sunday.

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The banal marketplace suffered crisp losses past week, with the large indexes shrugging disconnected short-lived rebounds to adjacent beneath cardinal moving averages. Apple banal and Tesla are among cardinal stocks to ticker successful the days ahead.

DocuSign (DOCU), a cardinal 2020 winner, crashed Friday arsenic hard times deed the bundle sector. But the penning was already connected the partition for the e-signature leader.

Adobe (ADBE), which had held up comparatively good successful caller weeks, yet tumbled connected Friday. Microsoft (MSFT) and Nvidia banal are starting to amusement immoderate strain. Tesla banal faces a cardinal trial arsenic EV rivals specified aft Lucid (LCID), Rivian Automotive (RIVN), Xpeng (XPEV) and Li Auto (LI) plunged.

Apple (AAPL) continues to clasp up, closing with a play gain.

A more-hawkish Fed and omicron variant fears are 2 catalysts for the caller sell-off, but what the marketplace is doing matters acold much than why. Investors should beryllium playing defence successful the existent marketplace environment, cutting vulnerability and not looking to marque caller buys.

Tesla (TSLA), Microsoft, Nvidia (NVDA) and Adobe banal are connected IBD Leaderboard. MSFT banal and Adobe are connected IBD Long-Term Leaders. Tesla, Nvidia, Microsoft and XPEV banal are connected the IBD 50.

The video embedded successful this nonfiction reviewed the marketplace enactment successful item and analyzed DOCU stock, Adobe and Tesla.

Bitcoin Price, Cryptocurrencies Off Lows

The terms of Bitcoin plunged aboriginal Saturday to conscionable supra $42,000 earlier recouping overmuch of those losses. Bitcoin is conscionable supra $49,000, inactive good disconnected Friday day levels, according to Coindesk. Ethereum is implicit $4,100, besides good disconnected Saturday greeting lows conscionable supra $3,500 and astir wherever it was astatine Friday's banal marketplace close.

Both person pulled backmost from aboriginal November peaks, particularly Bitcoin.

The terms of Bitcoin deed a grounds of $68,990.90, astir the clip the archetypal Bitcoin futures ETFs launched. The cryptocurrency tried to find enactment astir its 50-day enactment but retreated precocious past week. It's presently somewhat beneath its 200-day line.

The crypto sell-off comes arsenic fiscal assets are nether unit owed to the Omicron Covid variant and hawkish Fed rhetoric arsenic it confronts not-so-transitory inflation.

Bitcoin-related specified arsenic Marathon Digital Technology (MARA), Hut 8 Mining (HUT) and Coinbase (COIN) fell sharply connected Friday. They could beryllium successful for a unsmooth Monday if Bitcoin doesn't bounce back.

Dow Jones Futures Today

Dow Jones futures volition unfastened astatine 6 p.m. ET today, on with S&P 500 futures and Nasdaq 100 futures.

Remember that overnight enactment successful Dow futures and elsewhere doesn't needfully construe into existent trading successful the adjacent regular stock market session.


Join IBD experts arsenic they analyse actionable stocks successful the banal marketplace rally connected IBD Live


Coronavirus News

Coronavirus cases worldwide reached 265.97 million. Covid-19 deaths topped 5.26 million.

Coronavirus cases successful the U.S. person deed 49.93 million, with deaths supra 808,000.

The omicron Covid variant has been identified successful dozens of countries. Early indications are that it's much infectious than erstwhile strains, including the delta variant. But truthful acold astir cases person been mild. Many of those cases impact radical who are vaccinated, suggesting that vaccines supply coagulated extortion against hospitalizations and deaths. But truthful acold this reflects informed guesses.

Stock Market Last Week

The banal marketplace rally tried to rebound connected Monday and Thursday, but the selling unit continued, particularly for techs and tiny caps.

The Dow Jones Industrial Average fell 0.9% successful past week's stock marketplace trading. The S&P 500 scale mislaid 1.2%. The Nasdaq composite skidded 2.6%. The small-cap Russell 2000 tumbled 3.7%

The 10-year Treasury output gave up 14% ground points to 1.34%, with astir of that diminution connected Friday. As precocious arsenic Nov. 24, the 10-year output deed 1.69%, a seven-month high.

ETFs

Among the best ETFs, the Innovator IBD 50 ETF (FFTY) tumbled 6.3% past week, portion the Innovator IBD Breakout Opportunities ETF (BOUT) gave up 2.4%. The iShares Expanded Tech-Software Sector ETF (IGV) plunged 6.6%. Microsoft banal and Adobe are large IGV holdings, with DOCU banal besides successful the ETF. The VanEck Vectors Semiconductor ETF (SMH) edged up 0.6%. Nvidia banal is simply a cardinal SMH holding.

SPDR S&P Metals & Mining ETF (XME) retreated 4.6% and Global X U.S. Infrastructure Development ETF (PAVE) fell 1.85%%. U.S. Global Jets ETF (JETS) mislaid 2.1% for the week, adjacent with Thursday's 6.1% bounce. SPDR S&P Homebuilders ETF (XHB) edged up 0.4%, with existent builders looking strong. The Energy Select SPDR ETF (XLE) dipped 0.8% and the Financial Select SPDR ETF (XLF) slid 2%.

Reflecting more-speculative communicative stocks, ARK Innovation ETF (ARKK) dived 12.7% and ARK Genomics ETF (ARKG) 9.7%, some astatine 52-week lows. Tesla banal is inactive the No. 1 holding crossed ARK Invest's ETFs. But Cathie Wood has been selling TSLA and different high-priced holdings portion continuing to load up connected beaten-down highly valued techs, particularly software. ARK besides precocious bought immoderate XPEV stock.


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DocuSign Stock

DocuSign banal cratered 42% connected Friday aft giving anemic guidance. But the highly valued bundle shaper had flashed respective merchantability signals on the way, whether you bought adjacent accepted bargain points oregon astatine an aboriginal introduction successful June. After spiking higher connected net connected Sept. 3, DOCU sold disconnected hard, breaking decisively done its 50-day line. This was a wide awesome for anyone buying adjacent grounds highs. By aboriginal October, DocuSign had astir round-tripped the aboriginal introduction gain, but it did bounce disconnected its 200-day line. Then successful November, DOCU banal plunged done its 50-day enactment and yet its 200-day line, wiping retired each its caller gains heading into earnings, with different blistery bundle stocks tumbling.

Adobe Stock

Adobe banal plunged Friday, down 8.2% to 616.53. Shares decisively broke the 659.29 cup-with-handle bargain constituent and the 50-day line, according to MarketSmith analysis. ADBE banal broke retired successful aboriginal November, and struggled to marque overmuch headway, but its relative spot line trended higher during the month. But with markets weakening and bundle names crashing, it's hard for adjacent organization leaders to clasp up.

Adobe and DocuSign are competitors successful immoderate markets.

Microsoft Stock

Microsoft banal fell 2% connected Friday and for the week, to 323.01, pursuing a 3.9% descent the week before. MSFT banal is acold from broken. But aft a mid-October breakout, shares trended steadily higher, riding the 10-day oregon 21-day lines. Now it's investigating the 50-day and 10-week lines. Breaking those levels decisively would besides astir hitch retired caller gains, a reasonably beardown merchantability awesome for caller buyers.

Nvidia Stock

Nvidia banal besides is acold from broken. Shares fell 4.5% connected Friday, though they recovered enactment astatine the 21-day line. The 50-day enactment is inactive a agelong mode off. Investors could surely take to clasp NVDA banal here. Depending connected your condemnation successful the sanction oregon your investing style, you could take to instrumentality partial profits, either present oregon with a decisive 21-day enactment break.

Meanwhile, Nvidia rival and spot person adjacent Advanced Micro Devices (AMD) sank 7% past week, breaking done its 21-day line. AMD banal besides is good supra its 50-day line.

Tesla Stock

Tesla banal fell 6.4% to 1,014.97 connected Friday, moving decisively beneath its 21-day line. It's closing successful connected the 1,000 terms level arsenic good the 50-day and 10-week lines. Just beneath those areas is the Nov. 15 low. If TSLA banal tin find enactment astir present — possibly concisely undercutting these levels to flush retired anemic holders — it would beryllium a affirmative sign. Tesla banal could beryllium good connected its mode to forming a caller base. But with the marketplace acting truthful poorly and different EV stocks breaking down, investors should beryllium cautious. It would not beryllium a daze if Tesla suffered a bigger sell-off, overmuch similar Adobe did Friday.

While it's bully for TSLA banal bulls that the EV elephantine is starring its group, it's not precisely large quality that EV startups are tumbling. Rivian banal sank 6.65% past week to 104.67, getting adjacent to a post-IPO low. Expect a slew of post-IPO expert initiations by Monday's open, with Wedbush standing RIVN banal a bargain with a 130 terms target.

Lucid banal skidded 8.6% past week, though it's not excessively acold from caller highs. Xpeng banal and Li Auto banal plunged decisively beneath bargain points connected China delisting fears, with monolithic losses from Wednesday's intraday highs.

As for Tesla, the EV shaper released FSD Beta 10.6 implicit the weekend, the latest mentation of its driver-assist system.

Apple Stock

Apple banal fell backmost from Wednesday's all-time precocious of 171.30, but inactive climbed 3.2% to 161.84 for the week. Shares haven't adjacent touched their 21-day moving average. AAPL banal is 1 of the past tech stocks to clasp up well. Can that continue?

Stock Market Analysis

The banal marketplace suffered different bout of selling, with the Nasdaq breaking backmost beneath the 50-day enactment and undercutting Wednesday's lows. The S&P 500 besides fell beneath its 50-day enactment and conscionable undercut Wednesday's low. The Dow Jones hardly dipped Friday but fell for a 4th consecutive week. The Russell 2000 is good beneath its 200-day line, mounting caller multimonth lows.

The banal marketplace has sold disconnected sharply successful the past fewer weeks. There person been a fewer rebound attempts on the way, luring investors backmost in. But those person lasted a day, oregon less, with the Nasdaq connected Friday easy wiping retired Thursday's gains.

Huge sectors of the marketplace are heavy damaged oregon broken. Even organization prime names specified arsenic Microsoft and Nvidia banal are starting to buckle.

The advance-decline lines, aft Thursday's little respite, resumed their precipitous retreat.

The macroenvironment could beryllium a lose-lose situation. If omicron proves to beryllium a large wellness threat, coronavirus restrictions, societal distancing and radical staying retired of the labour unit could chill the system portion exacerbating galore shortages. If omicron turns retired to beryllium a blip, past the Fed whitethorn measurement up its enslaved taper to caput disconnected inflation.

Neither script seems peculiarly charismatic for the banal market.

REITs are inactive holding up, portion homebuilders and car parts retailers are doing well. These are antiaircraft and/or debased involvement plays. But they transportation risks too. If the marketplace sells disconnected hard, they whitethorn not beryllium capable to clasp up. If the marketplace rebounds and Treasury yields rise, these sectors could lag.

But don't effort to conjecture however the marketplace oregon assorted stocks volition behave. Pay attraction to what the marketplace and starring stocks are doing now. Right now, they are misbehaving.


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What To Do Now

The banal marketplace has weakened considerably successful the past fewer weeks. The near-term outlook for the broader marketplace is poor. Breakouts and different entries person failed. Many erstwhile highfliers person crashed. Leading stocks are breaking down, with adjacent remaining holdouts starting to amusement strain, including Tesla, Nvidia and Microsoft. Apple banal had a bully week, contempt pulling backmost from highs. But 1 bully Apple can't offset a rotten barrel.

This is not a clip to beryllium buying stocks, period. Don't fto a Monday bounce astatine the unfastened oregon adjacent each time gully you in, adjacent to a large victor specified arsenic Tesla oregon Nvidia stock. The marketplace needs to amusement existent spot earlier investors should perpetrate caller money.

Going to currency oregon having a constricted vulnerability to a fewer halfway holdings of winning stocks are dependable strategies.

Perhaps arsenic investors get much clarity connected the omicron variant and Fed policy, the marketplace volition marque a caller run. So investors should beryllium focusing connected reworking their watchlists. If you haven't updated those lists successful a fewer weeks, get acceptable for a large makeover. Focus connected stocks with beardown oregon rising RS lines. And support updating. Adobe banal was 1 to watch, until Friday.

Maybe Tesla stock, Microsoft oregon adjacent Apple volition interruption down successful the weeks ahead, oregon they could clasp up comparatively good and beryllium among the adjacent harvest of leaders. That's wherefore this is simply a clip to watch, not buy.

Read The Big Picture every time to enactment successful sync with the marketplace absorption and starring stocks and sectors.

Please travel Ed Carson connected Twitter astatine @IBD_ECarson for banal marketplace updates and more.

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