Dow Jones Futures Stock Market Rally Enters Power Trend Square Snap Carve Handles Are Apple Tesla Next

Stock futures are pointing up and the market rally is entering what technical analysts call a power trend. Square and Snap are carving handles on their charts. The question now is whether Apple and Tesla follow.

For those who dont speak chart nerd a handle pattern is a consolidation that often precedes another leg up. Whether you believe in technical analysis or not enough traders do that it becomes self-fulfilling.

Investors Business Daily tracks these patterns daily for traders who use technical signals.

Square has been on a tear since pandemic lockdowns pushed more small businesses toward digital payments. The company renamed to Block but everyone still calls it Square.

Market volatility creates opportunities for traders who know what theyre looking for.

Snap meanwhile has been more volatile. The advertising business faces headwinds but the user base keeps growing among younger demographics. Its a bet on future ad dollars.

Apple and Tesla are the elephants in the room. When those two move they drag indexes with them. Both are showing technical setups that could lead to breakouts if the broader market cooperates.

None of this is advice obviously. Markets do what they want regardless of what patterns suggest. But the setup is interesting for anyone watching.

Market analysis October 2021