All three of these futures markets—Dow Jones, S&P 500, and Nasdaq—rose marginally overnight. On Wednesday night, homebuilder Lennar (LEN), software manufacturer UiPath (PATH), and security firm SentinelOne (S) all made announcements.

Wednesday was a positive day for the stock market rally. Like artificial intelligence rally leader Nvidia (NVDA), the Nasdaq dipped but recovered to finish off lows while retaining most of Tuesday’s gains. The large gains on Tuesday were followed by uneventful sessions for several other major techs.

However, despite bearish news, sluggish Tesla (TSLA) continued its string of poor performance and dropped lower.

The market was very broad.

Several commodities, travel, and medical product sectors are currently in buy zones, although AI stocks have obviously led the market rally.

Among the companies that cleared a purchase point were Freeport-McMoRan (FCX), PBF Energy (PBF), and Royal Caribbean (RCL). Dexcom (DXCM) and Shockwave Medical (SWAV) are still considered buys.

Nevertheless, the current degree of optimistic sentiment is excessive and indicates that a downturn is probable in the near future. The recent market surge has shown no mercy for long pauses, instead launching brief “cat nap” pullbacks before swiftly resuming its upward trajectory and giving the impression of protracted duration.

Prices for Dow Jones futures were 0.1% higher than their fair market value. One percent increased for the S&P 500 and three percent for the Nasdaq 100.

Always keep in mind that the overnight fluctuations in Dow futures and other markets do not always reflect the trading activity that occurs during the next normal session of the stock market.

Despite falling short in revenue, Lennar surpassed earnings. Today, LEN stock had a small decline. Following an intraday record high, shares fell 0.3% in Wednesday’s regular session, closing at 165.50. According to MarketSmith research, Lennar stock has a 156.01 buy point and has marginally extended from a flat basis.

The maker of automation software UiPath guided lower on Q1 revenue but up for fiscal 2025, capping out the earnings report. After an initial surge in unpredictable action, PATH stock climbed somewhat in the late going. Despite a 0.85% decline to 24.43 on Wednesday, the stock managed to maintain its current rise above the 50-day moving average after a failed breakout. An early entry would be possible if prices rose over Wednesday’s high of $25.33.

SentinelOne surpassed fiscal Q4 expectations by a hair, but it provided a somewhat reduced revenue guidance for fiscal 2025. Stocks fell throughout the night. Wednesday saw a brief test of a downward-sloping trendline as SentinelOne shares dropped one penny to 27.94. It was a hazardous move due to the impending earnings announcement, but it allowed an early entry into an emerging base.

S&P 500 and Nasdaq fell slightly, giving up only a fraction of Tuesday’s gains, but overall, the stock market surge was mixed.

On Wednesday, stock market trading saw a 0.1% increase in the Dow Jones Industrial Average. At the same time, the S&P 500 index fell by 0.2 percent. Despite Tuesday’s 1.5% surge, the Nasdaq composite fell 0.5%. In the trading day leading up to Tuesday’s 7.2% surge, Nvidia lost 1.1% but was off its intraday lows.

The Russell 2000, a small-cap index, gained 0.3 percent. On the Nasdaq, decliners slightly led, but breadth was somewhat positive.

Some names in software, commodities, medical products, finance, energy, and travel are active or setting up shop, while Nvidia and numerous AI hardware plays are obviously extended.

Barrel prices of U.S. crude oil surged 2.8% to $79.72. Futures for gasoline rose 2.9%, or 5.3% this week, to a closing that was the highest in almost six months.

The closing price of $4.0525/pound for copper futures was the highest since April 2023, an increase of 3.25%. The largest percentage gain since the latter half of 2022 was achieved.

A 3.5 basis point increase brought the 10-year Treasury yield to 4.19%.

The bulls-bears mood gauge at Investors Intelligence is at ecstatic heights. Above the 60% threshold considered excessive, 60.9% of financial advisors are positive. It appears that there will be a setback, maybe a more significant one, soon. However, the timing is not critical. That marks the peak since the middle of 2021. Equally low since 2021, just 14.5% are pessimistic.

The market would likely chill sentiment, allow more bases to form, and give itself leeway for a longer run if there was a minor halt or retreat over several days or weeks. However, it hasn’t been the trend in the industry.

If you’re looking for a growth ETF, one that declined 0.7% was the iShares Expanded Tech-Software Sector ETF (IGV). A 2% decline was recorded by the VanEck Vectors Semiconductor ETF (SMH). One of SMH’s most valuable assets is Nvidia stock.

Both the ARK Innovation ETF (ARKK) and the ARK Genomics ETF (ARKG) saw small gains, reflecting the speculative nature of the story equities they represent. Among Ark Invest’s exchange-traded funds, Tesla stock ranks high. UiPath is also heavily invested in Cathie Wood.

Stocks of FCX were included in the SPDR S&P Metals & Mining ETF (XME), which edged upward. An investment in U.S. Global Jets ETF (JETS) rose 0.7%. Lennar shares were among the most heavily held in the 1.5% increase in the SPDR S&P Homebuilders ETF (XHB). Health Care Select Sector SPDR Fund (XLV) declined 0.4% and Energy Select SPDR ETF (XLE) surged 1.6%.

Earnings for the Industrial Select Sector SPDR Fund (XLI) came out to 0.3%. Additionally, XLF, the Financial Select SPDR ETF, rose 0.7%.

Among Wednesday’s S&P 500 performers, Freeport-McMoRan stock surged 7.6 percent to 43.41. Closing above a double-bottom base purchase target of 40.99, the copper and gold miner broke out of range. On the other hand, FCX stock has recently surpassed a 43.42 cup-with-handle purchase point on a weekly chart.

Teck Resources (TECK), which is more diversified, and Southern Copper (SCCO) also cleared bases on Wednesday.

With a 9% surge to 54.96, PBF Energy stock surpassed the 54.52 cup-with-handle buy point. Over the past 50 days, PBF stock has up 16%. Phillips 66 (PSX), a peer in the refining industry, cleared a brief consolidation on Wednesday, and a number of companies providing oil and gas gear and services have been active.

After falling 1.8% to 269.37, Shockwave Medical stock is now seeking the upper limit of a brief consolidation that began after an earnings gap and ended at the 200-day line. After just breaking a downtrend, SWAV stock is now in an actionable position that might serve as a handle to a massive base.

Dexcom shares experienced a 2.7% decline to 131.68, dipping below a 132.03 purchase target inside a broader consolidation, following a flat basis.

After a shaky flat basis, Royal Caribbean’s stock rose 1.8% to 132.11, breaking through the 130.97 buy threshold. At the same time as Marriott Worldwide (MAR) is attempting to untangle a tight pattern, competitor Carnival (CCL) has cleared an aggressive entrance.
Stock in Tesla

At 169.50, Tesla stock fell 4.5 percent, its lowest level since May of last year. Twenty24 has seen the steepest decline of any S&P 500 index component, with shares falling about 32%. Due to Tesla’s significant underperformance in comparison to the S&P 500 index in the past few months, the relative strength line has dropped to a level not seen in fourteen months. Blue is the color of the RS line in the given charts.

Prior to Wednesday’s market opening, Wells Fargo reduced its price target for Tesla from 200 to 125 and downgraded the stock to underweight. The analyst has recently gone along with the trend of cutting first-quarter delivery targets. His new EPS forecast for 2024 is almost a third lower than the market expects. Deliveries, he believes, will be inadequate. Citing “likely tough” economics, Wells Fargo added that an unannounced inexpensive electric vehicle might not be good for Tesla.

The UBS Group lowered its price prediction for Tesla from 225 to 165 and slashed its first-quarter delivery targets late Wednesday. Overnight, TSLA shares experienced a little decline.

In response to rumors that the American electric vehicle company and potential Tesla competitor is gearing up for a bankruptcy case, Fisker (FSR) fell over 40% by Wednesday night.

The amount of risk you have will determine whether incremental purchases are appropriate.

The market rally may be prolonged with a single positive day, but it is not currently extended. At the same time, investors should be wary of extremely strong enthusiasm.

Taking things easy in this setting is perfectly acceptable.