S&P 500, Dow Jones Futures Fall; Facebook, Adobe Systems Regain Buy Zones | Stock News & Stock Market Analysis

Futures for the S&P 500 index, Nasdaq 100 and Dow Jones industrial average fell significantly Wednesday morning. S&P 500 index futures fell 0.8% vs. fair value. Nasdaq 100 futures retreated 1%. Dow futures sank 1.1%. Those moves are much more modest than in the last couple of overnight sessions, but higher than normal in recent months.

The S&P 500 index, Nasdaq composite and Dow industrials rallied into Tuesday’s close for solid gains after another wild session, with the Nasdaq reclaiming its 50-day moving average. Tech leaders Facebook (FB) and Adobe Systems (ADBE) found support at the 50-day and finished back in buy range.

X Facebook and Adobe Systems both boast best-possible 99 Composite Ratings. The Composite Rating combines several proprietary IBD ratings, including for earnings and other key fundamental and technical data. All-time stock winners often have CRs of 95 or above near the start of their runs.

The market uptrend remains under pressure. Investors should be extremely cautious about buying any stocks and should consider taking profits in winners and being quick to cut losses.

IBD’S TAKE: Don’t try to guess where the market is headed next. Read The Big Picture every day to understand the action of the major averages and leading stocks.

After-hours and premarket action do not always translate into trading for the next regular session. Stock futures fell sharply before Tuesday’s open, and the major averages did tumble early, but eventually moved higher in a roller-coaster session.


Facebook hit a record high of 195.32 on Feb. 1, above a 184.35 flat-base buy point. But shares tumbled with the market on Friday and Monday. The stock closed at 181.26 on Monday, just below its 50-day moving average.

On Tuesday, Facebook fell to 177.75 intraday, but rebounded to close up 2.2% at 185.31 in Tuesday’s stock market trading. Volume was 78% above normal, and was higher than in the prior two down days.

The relative strength line, which tracks a stock vs. the S&P 500 index, has held steady at short-term highs and not far from the consolidation’s peak.

In related news, Facebook rival Snap (SNAP) surged late Tuesday on strong revenue and user growth, in what was the Snapchat operator’s first truly upbeat quarterly report since coming public in March 2017. Snap shares surged 21.5% to 17.08 in premarket trading. That suggests Snap could clear a 16.98 buy point from its first-ever base on Wednesday. But the stock is a long way from its March 3 peak of 29.44.

Adobe Systems

Adobe fell intraday Tuesday to 182.10, undercutting its 50-day moving average and its 186.37 buy point from a flat base. But the stock rebounded, climbing 2.2% to 194.47 in strong volume.

Adobe’s RS line has continued to trend higher during the recent market volatility and is now at a record high. Stocks that show resilience in choppy or weak markets deserve attention.


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Originally posted 2018-02-07 09:49:39.


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