This group of stocks is signaling a rebound, and that’s good news for the S&P 500, according to the technical analyst


Stock futures are higher as oil retreats as markets keep one eye on the Fed’s hawkish rhetoric and another on the brutal battle for Ukraine.

Some of that positivity may stem from investors appearing willing to choose higher rates over higher inflation, with the former seen as less toxic to businesses over the long term, said Ipek Ozkardeskaya, senior analyst at Swissquote.

While everything could change in a minute, investors might wonder what it will take for the S&P 500 to build on last week’s 6% rally. Our call of the dayMKM Partners Chief Market Technician JC O’Hara advises watching for signs of stabilization in areas that were first hit in the down leg.

And biotechnology fits that theme, he said. “The S&P 1500 Biotech stock group is bouncing back exactly where it should.” It focuses on two charts, from Ionis Pharmaceuticals IONS,
-0.94%
and Moderna ARNM,
-1.98%,
the latter who is hosting a Vaccine Day presentation for investors on Thursday.

It’s not just biotechnology. “There are more and more pharma charts reaching new highs in a band that has seen many bear market moves by individual names,” O’Hara said, as he signaled bullish Bristol Myers Squibb charts. BMY,
+0.04%,
Corcept Therapeutic CORT,
-1.36%,
Harmony Biosciences HRMY,
+0.20%,
Innoviva INVA,
-2.47%,
Johnson & Johnson JNJ,
+0.57%,
Eli Lilly LLY,
+0.70%,
and Pacira BioSciences PCRX,
-0.38%.

O’Hara also likes European pharmaceutical stocks. “As geopolitical concerns remain front and center in Europe, pharma looks like a good place to put capital to work.”

He sees bullish charts on the following names: ALK-Abello ALK.B,
-2.05%,
AstraZeneca AZN,
+0.40%,
Bayer Bayn,
+0.73%,
GlaxoSmithKline GSK,
-0.42%,
IPN Ipsen,
+0.50%,
Novartis NVS,
-0.82%,
Novo Nordisk NVO,
-1.15%,
ROG Rock,
-0.98%,
Sanofi SNY,
-2.19%
and UCB UCB,
-0.29%.

Regarding that 6% rally in the S&P 500 last week, O’Hara said the most positive outcome was a close above the key 4,400 level.

“The magnitude of the move was impressive, but the broken levels above are what we need to focus on,” said O’Hara, who noted other “bullish stocks,” such as the Russell 2000 RUT,
-0.97%
and the Nasdaq 100 COMP indices,
-0.40%
breaking above the intermediate downtrends. And the Stoxx Europe 600 has returned to a level seen the day Russia launched its attack on Ukraine.

The buzz

Ukrainian forces say they have retaken a key Kyiv suburb, as the battle for Mariupol rages and strategists say a stalemate is building. President Vladimir Zelensky says he is ready to discuss an agreement for a Russian ceasefire.

Accounts, yachts, private jets, properties in London, Italy and France worth over $17 billion have been connected to Russian officials closely linked to President Vladimir Putin, as well as dozens of oligarchs.

Nike NKE,
-0.80%
announced higher-than-expected earnings and sales, boosting premarket market share and tackling concerns about falling sales in China.

The Chinese e-commerce giant Alibaba BABA,
-4.35%
increased its buyback program to $25 billion.

The Okta OKTA,
-2.92%
The authentication company said it was investigating footage that appeared to show a hack into its internal system. This hack is believed to be based in Brazil, although the United States has warned at least 100 companies to prepare for Russian cyberattacks.

The data calendar is blank, but we have more Fed speakers coming — New York Fed President John Williams, San Francisco President Mary Daly, and Cleveland President Loretta Mester.

A tracker from Reclaim Finance reveals that 150 financial institutions are still working with oil and gas companies despite their green promises.

The steps

ES00 Equity Futures,
+0.33%

YM00,
+0.48%

NQ00,
+0.18%
are falling, and oil prices CL00,
+0.60%

NQ00,
+0.18%
head for a fourth straight winning streak. Treasury reports TMUBMUSD10Y,
2.354%
progress, with gold GC00,
+0.04%
and the dollar DXY,
-0.04%.

Stocks were mixed in Asia NIK,
+1.48%

000300,
-0.08%
and are weaker in Europe SXXP,
+0.46%.

Cryptocurrencies are also having a bullish day, with bitcoin BTCUSD,
+4.32%
pave the way higher.

Stock tickers

These were the most searched tickers on MarketWatch as of 6 a.m. EST.

Random plays

Russia did not kiss Video message from Arnold Schwarzenegger on the war in Ukraine.

The founder of World Central Kitchen pleads for whatsapp instant translated messages.

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