S&P 500 futures, along with Dow Jones futures and Nasdaq futures, fell modestly Tuesday morning. The S&P 500 and Dow Jones rose Monday, but hit resistance at their 50-day lines. Investors await President Donald Trump’s Tuesday afternoon announcement on whether to withdraw from the Iran nuclear deal.
S&P 500 Hits Resistance
The S&P 500 index, Dow Jones and Nasdaq composite extended Friday’s strong rally. However, the S&P 500 and Dow Jones briefly crossed above their 50-day moving averages but once again found resistance at that key level. President Trump tweeted that he will announce his Iran nuclear deal decision at 2 p.m. ET.
That announcement seemed to sap the stock market rally, as crude oil futures retreated below $70 a barrel in electronic trading. Crude futures were still just below $70 Tuesday morning. Crude prices, and oil stocks, have rallied on rising odds that Trump will exit the Iran deal, but investors appeared to lock in some profits ahead of his announcement.
The stock market is at a key juncture, especially as many top stocks break out or set up near buy points.
Top Stocks Near Buy Points
Alibaba, Salesforce, Red Hat, Splunk and ServiceNow all boast best-possible 99 Composite Ratings. The IBD Composite Rating combines several key factors, including earnings, into a single score. All-time top stocks often boast Composite Ratings of 95 or more near the start of their big runs.
Meanwhile, all five stocks have relative strength lines at record highs. The relative strength line, which tracks a stock’s performance vs. the S&P 500 index, offers an easy well to find the true leaders in good markets or bad. RS lines hitting new high ground before the stock does is especially bullish.
Salesforce, Red Hat, Splunk and ServiceNow are all software stocks. The software sector has been a leader in 2018.
S&P 500 Futures
As for stock market futures: S&P 500 futures were down 0.35% vs. fair value. Dow Jones futures dipped 0.3%. Nasdaq 100 futures were off 0.3%.
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