Market rises at key levels; Nvidia is nearing a buy point with a $100 billion forecast

Dow Jones futures will open on Sunday evening, along with S&P 500 futures and Nasdaq futures.

X

The stock market rally got off to a rocky start in 2024, with major indexes snapping a nine-week losing streak. But the S&P 500 and several leading stocks found support late in the week. Some stocks are flashing buy signals.

This could work but this will largely depend on whether the stock market rebounds or not. Stocks will continue to take their cues from the bond market, especially with Treasury yields around the 4% level.

Nvidia (NVDA) rebounded on Friday, approaching a buy point on expectations that the AI ​​chip giant could generate $100 billion in free cash flow in the next two years.

Poltigroup (mouth), Super micro computer (SMCI), Eli Lilly (LLY) And Mercadolibre (Millie), Snowflake (the snow) Constructive actions are also shown.

The Securities and Exchange Commission is expected to approve the first bitcoin spot funds next week, which could boost institutional participation on a much broader scale. Bloomberg reported on Friday that SEC staffers have no more issues for spot applicants for bitcoin ETFs.

Bitcoin and prominent cryptocurrency stocks such as CoinDesk (currency) and a miner Digital Marathon (Mara) over the past few months in anticipation of the ETF. Bitcoin and COIN stocks fell last week, while MARA stock rose sharply.

CoinDesk plans to acquire an unnamed company with a MiFID II license, which will allow it to offer bitcoin derivatives in the European Union, the cryptocurrency exchange told CNBC.

Meanwhile, get ready for big tech and medical news with the CES tech show and JPMorgan Healthcare conference scheduled for next week. Earnings season will also begin C. B. Morgan Chase (JBM), Citigroup (C) And UnitedHealth (United nations) among the big names.

Nvidia stock is on IBD Leaderboard. Eli Lilly and MercadoLibre stock are on SwingTrader. Nvidia, Snowflake, Super Micro, and MELI are on the list Bahraini dinar 50.

The video embedded in the article discusses the start of the raw market through 2024 and analyzes Nvidia, Spotify (spot) and PHM stock.

Dow jones futures today

Dow Jones futures open at 6pm EST on Sunday, along with S&P 500 futures and Nasdaq 100 futures.

Remember, an overnight move in Dow Jones futures and elsewhere does not necessarily translate into actual trading in the next regular stock market session.

Join IBD experts as they analyze leading stocks and the market on IBD Live

Stock market pool

The stock market rally eased, with all major indexes posting their first weekly losses since the end of October.

The Dow Jones Industrial Average fell 0.6% in stock market trading last week. The Standard & Poor's 500 index fell 1.5%. The Nasdaq Composite Index fell by 3.25%. The small-cap Russell 2000 stock fell 3.75%.

The S&P 500 found support at the 21-day line. But the Russell 2000 hit resistance there and pulled back, ending again within a long range. The Nasdaq is trading below its 21-day decline level now. The next obvious support area is the top of the Nasdaq range from July to early December.

Blue chip stocks suffered strong to steep losses to start the new year, especially those that were rising in late 2023. Many found support at some key levels. Some bounced higher from those levels, fading somewhat again at Friday's close.

With major indices and leading stocks around key levels, even modest moves can make the market appear significantly more bullish or bearish, even if the action is not truly decisive.

The yield on the 10-year Treasury note rose 18 basis points to 4.04%. On Friday, the 10-year bond yield rose to 4.1%, then reversed to 3.95% before closing above 4%.

US crude oil futures rebounded 3% to $73.81 per barrel last week.

ETFs

Among the growth ETFs is the iShares Expanded Technology Software Sector ETF (IGV) fell 4.7%, while the VanEck Vectors Semiconductor ETF (Trait) They waived 5%, both for their lines for 10 weeks. Nvidia stock is the #1 stock in SMH.

SPDR S&P Metals and Mining Fund (XME) fell 2.8% last week. SPDR S&P Homebuilders ETF (XHB) fell 3.4%, with PHG stock gaining significantly. Energy Select SPDR ETF (XLE(1% and selected healthcare sector SPDR fund)Forty-fifth) by 2%, and LLY stock was a major component. Selected Industrial Sector SPDR Fund (forty-first) declined by 2.25%, while the Financial Select SPDR ETF declined (XLF) rose by 0.4%.

Reflecting more speculative stocks, the ARK Innovation ETF (Ark) sold off 6.6% last week and the ARK Genomics ETF (Arkj) gave up 3.7%.

Time the market with IBD's ETF market strategy

Nvidia

Nvidia stock fell 0.9% to 490.97, rebounding late in the week from the 50-day/10-week line and closing back above the 21-day line. The stock has a 505.48 flat base buy point formed around the top of the double bottom base. A move above the 500 level – a key resistance area for several months – could provide an early entry into NVDA stock.

Nvidia could generate $100 billion in free cash flow over 2024-2025, Bank of America analyst Vivek Arya said on Friday. This could apply to shareholder returns – perhaps $30 billion to $35 billion – as well as acquisitions. Arya has a Buy rating and $700 price target on NVDA stock.

Prepare other stocks

Eli Lilly stock rose 6.1% to 618.55 during the week, beating early entries on Tuesday and Wednesday. On Thursday, LLY stock briefly surpassed a firm buy point at 629.97.

MELI stock fell 2.1% last week to 1,519.38, but rebounded from the 50-day line late in the week, hitting resistance at the 21-day line. Clearing the 21 days decisively will provide early entry. MercadoLibre stock now has a firm base with an official buy point of 1,660. This is part of the base on base pattern.

SNOW stock fell 5% to 189.12 during the week, but has rebounded well off the lows from its 10-week line. Like MELI, the data analysis software company encountered resistance at the 21-day line. Snowflake stock remains valid at a 192.66 buy point for a cup with handle, according to MarketSmith analysis. It is possible that SNOW has begun to form a new base near the top of that cup.

PHM stock fell 1.7% to 101.48, but maintained support despite a rebound in Treasury yields. PulteGroup has a tight three-week entry with a buy point of 105.13. This was formed with a take profit zone of 20%-25% of the cup with handle buy point that cleared on November 14th.

The SMCI rose 2.8% to 292.13 last week, rebounding from the 50-day range and reclaiming the 21-day line. At this point, investors can use the 300 level as an early entry point, just above Friday's high. Super Micro was a huge success for several years and ended with an ugly post-earnings gap in early August. Subsequent cohesion was volatile, but began to tighten. Investors can see 327.55 as the entry for the handle.

How AI generation can drive demand for Snowflake's data management software

What are you doing now

It's been a rough start to 2024 with the market rising, but that's not really surprising after nine straight weekly gains. The S&P 500 and Nasdaq are near key levels.

As well as many leading stocks. Some buy signals have emerged, but their success will depend on the broader market.

The best that can be said is that the bulls are trying to take a position, but they are not making much progress.

Don't let your emotions continue to fluctuate with intraday fluctuations, which may seem more important when the market is around key levels.

However, a market decline creates potential buying opportunities. So, build your watch lists, focusing on stocks that are finding support and showing relative strength. Stay tuned to the market, and keep an open mind until you are ready to add more exposure or pull back.

Read The Big Picture every day to stay on top of market trend and leading stocks and sectors.

Please follow Ed Carson on topics at @edcarson1971x/Twitter at @IBD_ECarson And Bluesky V @edcarson.bsky.social For stock market updates and more.

You may also like:

Do you want to get quick profits and avoid big losses? Try SwingTrader

Best growth stocks to buy and watch

IBD Digital: Unlock IBD's featured stock listings, tools and analysis today

Bitcoin ETFs are coming fast. Investing in cryptocurrencies will never be the same.