Dow futures rose slightly early Wednesday morning, along with S&P 500 futures and Nasdaq futures. The Nasdaq composite hit a new high Tuesday, rebounding from early losses as Netflix (NFLX) stock slashed losses while Amazon.com (AMZN), Facebook (FB) and Google parent Alphabet (GOOGL) hit new highs. Alphabet stock moved into a buy zone. Meanwhile, Apple (AAPL), Proofpoint (PFPT), Five Below (FIVE) and American Express (AXP) are top stocks that have moved within 2% of entry points.
Five Below stock boasts a best-possible Composite Rating of 99. Apple stock and American Express enjoy a strong 91 Composite Rating while Proofpoint is a 92. Apple and American Express are Dow Jones stocks. Alphabet stock has a 98 CR.
Top Stock Breakouts Scarce
Even though the Nasdaq is at a new high, the S&P 500 index at a five-month best and Dow Jones up in eight of the last nine sessions, breakouts by top stocks have been scarce. That makes it hard for investors to take advantage of the confirmed stock market uptrend.
On Tuesday, RingCentral (RNG) and Mindbody (MB) cleared buy points in Tuesday’s stock market trading. But RingCentral stock rose in light volume while Mindbody closed only slightly above its entry.
Google Stock
Google parent Alphabet’s stock rose 1.4% to 1,213.08 on Tuesday, moving above a high-handle buy point of 1,201.59 after sinking to 1,182 soon after the open.
Volume was 16% above normal, which just so-so. You like to see a top stock moving into buy range on volume that’s at least 40%-50% higher than average.
On the plus side, Google’s relative strength line, which tracks a stock’s performance vs. the S&P 500 index, is hitting a new high, confirming the share price action.
Google stock actually closed in buy range on Friday, but the tiny (0.3%) price move on below-average volume made that suspect.
Google’s move Tuesday comes despite Google cloud problems that disrupted the Drudge Report, Spotify (SPOT), Snapchat (SNAP) and other key sites. Meanwhile, the European Union is expected to impose a multibillion fine vs. Google over its Android operating system. It’s likely to be bigger than the EU’s $2.7 billion penalty last year over Google shopping search results.
Apple Stock
The iPhone maker nudged up 0.3% to 191.45, actually lagging the S&P 500 index and other major averages Tuesday. But Apple stock found support at its 50-day/10-week line and moved to within 1.5% of its 194.30 flat-base entry. Apple stock’s RS line has been lagging slightly in recent weeks but is still close to highs.
American Express Stock
The credit-card giant climbed 0.5% to 101.15 on Tuesday. American Express is just below a 103.34 flat-base buy point. AmEx reclaimed its 50-day line last week.
American Express earnings are due Wednesday.
Proofpoint Stock
Part of the hot cybersecurity group, Proofpoint stock rose 1.65% to 127.28, just below a 128.39 double-bottom entry. The RS line is not at a new high, but it’s already at a short-term peak from the middle of the pattern’s “W.”
Five Below Stock
The teen- and tween-centric discount retailer has been consolidating for several weeks after blasting higher in early June amid blowout earnings. Five Below stock now has a 104.09 entry. Shares rose to 103.90 intraday before reversing for a 1.15% loss to 102.24.
Dow Futures Today
Dow futures rose 0.1% vs. fair value. S&P 500 futures climbed 0.1%. Nasdaq 100 futures advanced 0.1%.
As Nasdaq futures and Netflix stock showed late Monday/early Tuesday, extended trading doesn’t always translate into action in the next regular stock market session.
