FormerXBC Inc XEBEQ

Futures

[ZouZS3]

ED CARSON 08:12 AM ET 02/28/2021 Dow Jones futures will open Sunday evening, along with S&P 500 futures and Nasdaq futures. The stock market rally came under pressure last week, with the Nasdaq and speculative growth names hardest hit. The market rally, now an uptrend under pressure, is at a turning point. Regaining key support levels would signal renewed strength. But a Nasdaq break below last week's low would send a bearish signal. Dow Jones futures will open at 6 p.m. ET 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. The stock market rally had a lot of wild intraday swings, with the major indexes finishing with notable decline, near weekly lows. The major indexes retreated last week, especially the Nasdaq composite. The tech-heavy index tried to regain its 50-day moving average on Friday, but failed to close above it amid heavy selling at the close. Also, volume was much lighter on the up days than the downside. For much of the week, the stock market rally looked like it might be in a violent sector rotation out of speculative growth and into real economy cyclical names. The Dow Jones hitting a record high on Wednesday provided further evidence. However, the Dow Jones and S&P 500 fell sharply on Thursday-Friday, barely closing above their 50-day lines. Investors should be wary of making new buys until the Nasdaq is back above its 21-day line. You should have reduced exposure substantially over the past couple of weeks. If the Nasdaq undercuts and closes below Tuesday's low, that would be a signal to move further into cash. Analyze your holdings. Are there stocks you should have sold partially or entirely last week? Which are your long-term bets that you want to hold a core position in? Make sure you're looking at commodity-related plays, financials and other cyclicals. Review your trades from the past several months. Look at your big winners and losers. Look for stocks that you owned that you sold too soon, missing out on big winners. Identify the chart patterns and the strengths and weaknesses in your trading moves.