Tactically, the Nasdaq remains near-term extended, and due a cooling-off period. (See the Nasdaq’s early-August breakout — encompassing four straight closes atop the 20-day volatility bands — and subsequent flat pullback.)
But more importantly, the Nasdaq’s primary uptrend has been confirmed with the nearly straightline August spike.
Looking elsewhere, the Dow Jones Industrial Average is digesting a rally to six-month highs.
The prevailing upturn punctuates a mid-August flag pattern, underpinned by the former breakout point (27,580).
On further strength, more distant overhead matches the top of the February gap (28,892).
Meanwhile, the S&P 500 has knifed to record highs, rising slightly atop the 3,500 mark.
Separately, consider that the August close (3,500) matched a projected target from the June range (3,501), detailed previously.
The bigger picture
As detailed above, the major U.S. benchmarks have taken flight, staging technically significant summer breakouts.
In the process, the S&P 500 and Nasdaq Composite have just concluded their best August performance in 36 years.
Moving to the small-caps, the iShares Russell 2000 ETF remains in consolidation mode.
Still, the small-cap benchmark has maintained trendline support. The prevailing tight range is a bullish continuation pattern, hinged to the steep early-August rally. (See the tight late-July range, and upside follow-through.)
Meanwhile, the SPDR S&P MidCap 400 ETF continues to press its range top. A prolonged test of the June peak (355.23) remains underway.
Last week’s high (355.26) matched resistance.
Looking elsewhere, the SPDR Trust S&P 500 has knifed to all-time highs.
The prevailing upturn punctuates a tight mid-August range — a coiled spring — though it has been fueled by lukewarm volume.
Placing a finer point on the S&P 500, the index taken flight.
More directly, the S&P has staged a bullish 3.4% late-August breakout, confirming its primary uptrend.
When or if the index pulls in, near-term support is not well-defined. Tactically, the top of last week’s gap (3,413) is closely followed by the firmer breakout point — the 3,393-to-3,400 area.
Beyond technical levels, the S&P 500 remains near-term extended, and due to consolidate at some point. Its more important bigger-picture backdrop has strengthened in recent weeks, and remains firmly-bullish.
The charts below detail names that are technically well positioned. These are radar screen names — sectors or stocks poised to move in the near term. For the original comments on the stocks below, see The Technical Indicator Library.
Drilling down further, the Health Care Select Sector SPDR is acting well technically. (Yield = 2.3%.)
As illustrated, the group has tagged a nominal all-time high, edging atop well-defined resistance. The prevailing upturn punctuates a tight six-week range — a coiled spring — laying the groundwork for potentially more decisive follow-through.
Tactically, the 50-day moving average closely matches the former range bottom (104.60). A breakout attempt is in play barring a violation.
More broadly, the group is well positioned on the three-year chart, building on a massive early-2020 V-shaped reversal.
Looking elsewhere, the iShares U.S. Real Estate ETF has reached a key technical test. (Yield = 3.4%.)
Specifically, the group is pressing its 200-day moving average, currently 83.35, a widely-tracked longer-term trending indicator. The prevailing upturn punctuates a tight one-month range.
Conversely, the ascending 50-day moving average, currently 80.35, has underpinned the tepid summer price action. The group’s breakout attempt is intact barring a violation.
Initially profiled July 23, Advanced Micro Devices, Inc. AMD,
has returned 47.0% and remains well positioned.
The shares concluded July with a gap to record territory, rising after the company’s quarterly results.
More immediately, the shares have extended the uptrend, rising amid optimism over the weekend launch of a new processor. Tactically, the breakout point (86.70) pivots to support.
Conversely, an intermediate-term target projects to the 97.00 area on follow-through.
Splunk, Inc. SPLK,
is a well positioned large-cap software vendor.
Late last month, the shares knifed to record territory, rising amid a volume spike after the company’s quarterly results. An intermediate-term target projects to the 244 area.
Conversely, the breakout point (217.30) is followed by deeper gap support (209.15). A sustained posture higher signals a firmly-bullish bias.
Beyond Meat, Inc. BYND,
is a large-cap name coming to life.
Technically, the shares have recently cleared trendline resistance, rising after an analyst upgrade. The strong-volume upturn has been punctuated consecutive closes atop the 50-day moving average.
On further strength, additional overhead matches the August peak (142.50). Follow-through higher would mark a “higher high” confirming the recent trend shift.
Conversely, the top of the gap (128.80) is closely followed by trendline support, circa 127.00. The prevailing recovery attempt is intact barring a violation.
Finally, Elastic N.V. ESTC,
is a large-cap software and search name.
Late last month, the shares knifed to record highs, rising after the company’s quarterly results. The prevailing pullback places the shares 8.2% under the August peak.
Tactically, the post-breakout low (106.85) has closely matched the breakout point (106.98). A sustained posture higher signals a firmly-bullish bias.
Still well positioned
The table below includes names recently profiled in The Technical Indicator that remain well positioned. For the original comments, see The Technical Indicator Library.