and S&P 500 futures and Nasdaq futures will open Sunday evening. The major indexes and leading stocks suffered heavy losses , prompting a shift in the market direction to “correction.”
Tesla (TSLA) reported booming third-quarter deliveries on Saturday morning. The EV maker delivered over 241,000 vehicles, far above Q2’scomfortably.
Growth stocks had their worst week since the coronavirus crash. The S&P 500 and Nasdaq plunged below their 50-day lines and undercut their Sept. 20 lows. While stocks rebounded Friday, they mark day one of aattempt. For now, the market remains in a downtrend.
In such an environment, investors should have limited market exposure or be entirely in cash. Look for stocks with strong relative strength lines.
Netflix (NFLX), Datadog (DDOG), Mosaic (MOS),(AXP), Bill.com (BILL), Quanta Services (PWR), and Paychex (PAYX) all have RS lines at or near highs, reflecting their outperformance vs. the S&P 500 index.
Also, watch Microsoft (MSFT) and Google (GOOGL). These tech mega caps RS lines aren’t far from highs. If MSFT stock and Google can reclaim their 50-day lines, it’s a good sign for the Nasdaq.
As for TSLA stock, it was held in azone before reporting Q3 deliveries. The RS line for Tesla isn’t at a new high but is at its best levels in nearly six months.
Microsoft stock and Google also are on IBD Long-Term Leaders. American Express and PWR stock are on SwingTrader. Google stock is on the IBD 50. The video embedded in this article analyzed the overall stock market action and reviewed Netflix, Mosaic, and DDOG stock., Microsoft, and Google are on IBD Leaderboard.
Infrastructure Bill Still In Flux
Meanwhile, the fate of the $1.2bill remains unclear. House progressives are demanding significant progress, at minimum, on a multi-trillion dollar reconciliation tax-and-spend package before . But Democratic leaders now appear to be trying to get centrist Democrats to agree to a $2 trillion reconciliation package vs. the long-touted $3.5 billion packages. met with
Raising the debt limit without Republican votes could complicate the reconciliation package, which could keep the infrastructure bill in a holding pattern. Democratic lawmakers Friday, telling them the infrastructure extended government funding into early December last week, lawmakers still must approve a debt limit hike. Treasury Janet Yellen has pegged Oct. 18 as the .pass until there’s “agreement” on the reconciliation bill. On Saturday, Pelosi said the needs to die “well before” Oct. 31, when existing transportation funding expires. Also, while Congress