Dow Jones Futures: Market Rally Runs Up To Key Test; Here’s What To

Dow Jones futures will open on Sunday evening, along with S&P 500 futures and Nasdaq futures. The stock market rally had another strong week, moving up to a major test.

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A market pause wouldn’t be a surprise, and could be healthy, after strong price gains in generally light volume over the past several weeks. Investors should be cautious about adding more exposure.

Diversified oil giant Exxon Mobil (XOM) is setting up near possible entries, as energy stocks take the lead once again. Costco Wholesale (COST) has a cup-with-handle base, though several key rivals are reporting this coming week. UnitedHealth (UNH) has traded tightly within a buy zone, creating another entry. Apple (AAPL) is moving close a breakout as AAPL stock is outperforming other megacaps. Microsoft (MSFT) is closing in on its 200-day line, which could offer a chance to start a position.

China EV startup Li Auto (LI) reports earnings before Monday’s open. LI stock has been among the better EV stocks, outperforming giants BYD (BYDDF) and Tesla (TSLA), but needs to get above its 50-day line. BYD stock is below its 50-day line while Tesla is just below its 200-day.

UNH stock is on IBD Leaderboard and was Friday’s IBD Stock Of The Day. MSFT stock is an IBD Long-Term Leader.

The video embedded in this article discussed the weekly market action in depth, while also analyzing Exxon Mobil, UnitedHealth and Apple stock.

Dow Jones Futures Today

Dow Jones futures open at 6 p.m. ET on Sunday, along with S&P 500 futures and Nasdaq 100 futures.

Remember that overnight action in Dow futures and elsewhere doesn’t necessarily translate into actual trading in the next regular stock market session.

Join IBD experts as they analyze actionable stocks in the stock market rally on IBD Live

Stock Market Rally

The stock market rally closed at weekly highs despite some reversals during the week.

The Dow Jones Industrial Average rose 2.9% in last week’s stock market trading. The S&P 500 index popped 3.25%. The Nasdaq composite ran up 3.1%. The small-cap Russell 2000 leapt 5%.

The 10-year Treasury yield rose 1 basis point to 2.85%, but with some big moves during the week.

U.S. crude oil futures rose 3.5% to $92.09 a barrel last week, despite Friday’s pullback. Gasoline futures leapt 6.7%. Natural gas prices jumped 8.7% for the week.

ETFs

Among the best ETFs, the Innovator IBD 50 ETF (FFTY) gained 2.3% last week, while the Innovator IBD Breakout Opportunities ETF (BOUT) rallied 3.1%. The iShares Expanded Tech-Software Sector ETF (IGV) advanced 3%, with MSFT the top IGV holding. The VanEck Vectors Semiconductor ETF (SMH) edged up 0.7%, rebounding from steep losses following the Nvidia (NVDA) and Micron (MU) warnings.

SPDR S&P Metals & Mining ETF (XME) jumped 8.3% last week. The Global X U.S. Infrastructure Development ETF (PAVE) popped 4.6%. U.S. Global Jets ETF (JETS) ascended 3.5%. SPDR S&P Homebuilders ETF (XHB) rallied 4%, its eighth straight weekly gain. The Energy Select SPDR ETF (XLE)…