Technically speaking, the major U.S. benchmarks are back on offense, rising in the wake of an aggressive September downdraft.
Against this backdrop, the S&P 500 and Nasdaq Composite have narrowly maintained major support — S&P 3,328 and Nasdaq 10,840 — rising from key tests to preserve a bullish intermediate-term bias.
Before detailing the U.S. markets’ wider view, the S&P 500’s
hourly chart highlights the past two weeks.
As illustrated, the S&P has narrowly maintained major support.
The specific area matches the early-2020 breakout point (3,328) and the 50-day moving average, currently 3,331.
The prevailing upturn punctuates a successful retest, preserving a bullish intermediate-term bias.
Meanwhile, the Dow Jones Industrial Average
has maintained its range bottom.
The index registered consecutive session lows last week within one point of support (27,447).
Slightly more broadly, the Dow has weathered a shaky test of its breakout point (27.580), an area better illustrated on the daily chart.
Against this backdrop, the Nasdaq Composite
is digesting an 11% plunge from record highs. Two inflection points stand out:
- The 50-day moving average, currently 10,970.
- Major support matching the former breakout point (10,840).
Last week’s close (10,853) registered slightly atop support, and the index has reclaimed its 50-day moving average with this week’s strong start.
Widening the view to six months adds perspective.
On this wider view, the Nasdaq is digesting its fastest-ever 10%+ pullback from record territory.
The September downturn has been underpinned by major support (10,840), detailed repeatedly.
Consider that the September closing low (10,847) — established last Tuesday — and last week’s close (10,853) registered nominally atop major support.
The shaky, but successful, retest preserves a bullish intermediate-term bias.
Looking elsewhere, the Dow Jones Industrial Average has survived an extended test of its breakout point (27,580).
Recall that the Dow is adjusting to three new components, and Apple’s recent stock split, events that have affected its technical levels on the margin.
Delving deeper, the 50-day moving average, currently 27,356, remains an inflection point. The 50-day effectively defined the May, June and late-July lows.
Meanwhile, the S&P 500 has pulled in as much as 7.7% from its record high.
Consider that last week’s closing low (3,331) — established last Tuesday — registered slightly atop next support (3,328). The index has maintained this area on a closing basis.
Separately, the S&P has briefly tagged its 50-day moving average, currently 3,331, for the first time since April.
The bigger picture
Collectively, the S&P 500 and Nasdaq Composite have survived key technical tests even amid an aggressive September downturn.
More directly, the S&P 500 has narrowly maintained major support (3,328) while the Nasdaq Composite has weathered an extended test of its breakout point (10,840). (See the Sept. 8 review.)
Last week’s closing lows — S&P 3,331 and Nasdaq 10,847, both established last Tuesday — registered nominally atop support to initiate a full-week test.
The prevailing rallies from support punctuate successful retests, preserving a bullish intermediate-term bias.
Moving to the small-caps, the iShares Russell 2000 ETF has rallied from an extended test of the 50-day moving average.
The upturn places its breakdown point (153.39) in play.
Monday’s session high (153.43) matched resistance, and a retest remains underway.
Similarly, the SPDR S&P MidCap 400 ETF has weathered an extended September test of the 50-day moving average.
So combined, the small- and mid-caps — as well as the S&P 500 and Nasdaq Composite — have at least tagged the 50-day moving average, if not hammered it. The Dow industrials have maintained a posture atop the 50-day.
Looking elsewhere, the SPDR Trust S&P 500 has rallied from its 50-day moving average, currently 332.64.
To reiterate, overhead inflection points match the former breakout point (338.35) and the 20-day moving average, currently 342.78. Follow-through atop these areas would signal waning selling pressure.
Monday’s close (338.46) matched resistance, and the SPY has followed through higher early Tuesday.
Placing a finer point on the S&P 500, the index has maintained major support (3,328).
To reiterate, last Tuesday’s session low (3,329.25) and Thursday’s low (3,329.27) effectively matched the inflection point.
The index briefly undercut support Friday before notching a weekly close (3,341) atop support.
Conversely, last week’s high (3,425) closely matches the 20-day moving average, currently 3,429. Follow-through atop this area would strengthen the near-term backdrop, potentially signaling an end to the consolidation phase.
More broadly, th S&P has narrowly maintained the 50-day moving average, currently 3,331, a level matching major support (3,328).
The index briefly tagged the 50-day moving average Friday — on an intraday basis — for the first time since April.
Both levels mark headline inflection points — detailed previously — and the successful retest preserves a bullish intermediate-term bias. Beyond technical levels, the markets’ response to the Federal Reserve’s mid-week policy statement may add color.
Tuesday’s Watch List
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 Materials Select Sector SPDR
is acting well technically. (Yield = 2.1%.)
As illustrated, the group has rallied to challenge its record peak (66.33), established Sept. 2. A near-term target projects to the 69.00 area on follow-through.
Conversely, the prevailing upturn originates from trendline support and the breakout point (63.10).
Slightly more broadly, the ascending 50-day moving average previously defined the trend. The group’s intermediate-term bias remains bullish barring a violation.
Looking elsewhere, the VanEck Vectors Gold Miners ETF
is showing signs of life ahead of the Federal Reserve’s policy statement.
Technically, the group has edged atop trendline resistance, rising from support matching the breakout point. The upturn opens the path to a potential retest of seven-year highs at the August peak.
Conversely, the trendline pivots to support. Delving slightly deeper, the 50-day moving average, currently 41.20, is followed by the September low (39.30).
More broadly, the group is well positioned on the five-year chart, asserting a bullish continuation pattern hinged to the massive early-2020 rally.
Moving to specific names, American Express Co.
is a Dow 30 component coming to life. (Yield = 1.6%.)
As illustrated, the shares have reclaimed the 200-day moving average, rising from a tight September range. The upturn punctuates consecutive August tests of trendline support.
Tactically, the breakout point (104.80) closely matches the 200-day moving average (104.54) and is followed by the former range bottom (102.00). The rally attempt is intact barring a violation.
Initially profiled July 13, SunPower Corp.
has returned 81.6% and remains well positioned.
Late last month, the shares gapped to four-year highs, rising as the company spun off Maxeon Solar Technologies.
The subsequent pullback has been flat, fueled by decreased volume, placing the shares 13.6% under the September peak.
Tactically, the top of the gap (10.50) is followed by the post-breakout low (9.95). A sustained posture higher signals a firmly-bullish bias.
Finally, Agnico Eagle Mines, Ltd.
is a large-cap Toronto-based gold miner.
Technically, the shares have reached nine-year highs, clearing well-defined resistance amid a volume spike. The upturn punctuates an orderly five-week range. A near-term target projects to the 92.00 area.
Conversely, the breakout point pivots to support (84.50) and is followed by a near-term floor matching the August gap (81.50). The prevailing uptrend is firmly intact barring a violation.
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.
|Company||Symbol* (Click symbol for chart.)||Date Profiled|
|V.F. Corp.||VFC||Sept. 14|
|Crocs, Inc.||CROX||Sept. 14|
|Toyota Motor Co.||TM||Sept. 14|
|Five Below, Inc.||FIVE||Sept. 10|
|Dow Inc.||DOW||Sept. 10|
|Eastman Chemical Co.||EMN||Sept. 10|
|CrowdStrike Holdings, Inc.||CRWD||Sept. 9|
|Workhorse Group, Inc.||WKHS||Sept. 9|
|International Paper Co.||IP||Sept. 3|
|Anaplan, Inc.||PLAN||Sept. 2|
|Beyond Meat, Inc.||BYND||Sept. 1|
|Elastic N.V.||ESTC||Sept. 1|
|iShares U.S. Real Estate ETF||IYR||Sept. 1|
|Yum Brands, Inc.||YUM||Aug. 31|
|Celanese Corp.||CE||Aug. 26|
|Hilton Worldwide Holdings, Inc.||HLT||Aug. 26|
|Norfolk Southern Corp.||NSC||Aug. 25|
|Westlake Chemical Corp.||WLK||Aug. 25|
|Deere & Co.||DE||Aug. 24|
|PulteGroup, Inc.||PHM||Aug. 24|
|Expedia Group, Inc.||EXPE||Aug. 24|
|Visa, Inc.||V||Aug. 21|
|Johnson Controls International||JCI||Aug. 21|
|DuPont de Nemours, Inc.||DD||Aug. 21|
|Adobe, Inc.||ADBE||Aug. 20|
|Canadian Solar, Inc.||CSIQ||Aug. 20|
|General Motors Co.||GM||Aug. 20|
|Starbucks Corp.||SBUX||Aug. 18|
|Emerson Electric Co.||EMR||Aug. 18|
|Builders FirstSource, Inc.||BLDR||Aug. 18|
|Steel Dynamics, Inc.||STLD||Aug. 17|
|Elanco Animal Health, Inc.||ELAN||Aug. 17|
|Eaton Corp.||ETN||Aug. 14|
|Brinker International, Inc.||EAT||Aug. 13|
|Enphase Energy, Inc.||ENPH||Aug. 13|
|Avis Budget Group, Inc.||CAR||Aug. 12|
|U.S. Global Jets ETF||JETS||Aug. 11|
|Nike, Inc.||NKE||Aug. 11|
|Nucor Corp.||NUE||Aug. 11|
|Financial Select Sector SPDR||XLF||Aug. 10|
|Freeport McMoRan, Inc.||FCX||Aug. 10|
|Natera, Inc.||NTRA||Aug. 10|
|Lennar Corp.||LEN||Aug. 7|
|McDonald’s Corp.||MCD||Aug. 7|
|Mastercard, Inc.||MA||Aug. 6|
|United Health Group, Inc.||UNH||Aug. 6|
|Kansas City Southern||KSU||Aug. 6|
|Industrial Select Sector SPDR||XLI||Aug. 6|
|Verizon Communications, Inc.||VZ||Aug. 5|
|Sunrun, Inc.||RUN||Aug. 5|
|Coeur Mining, Inc.||CDE||Aug. 5|
|Southern Copper Corp.||SCCO||Aug. 3|
|Agco Corp.||AGCO||July 31|
|Penn National Gaming, Inc.||PENN||July 30|
|Procter & Gamble Co.||PG||July 29|
|SPDR S&P Metals & Mining ETF||XME||July 28|
|iShares MSCI South Korea ETF||EWY||July 28|
|HCA Healthcare, Inc.||HCA||July 28|
|Toll Brothers, Inc.||TOL||July 27|
|HP, Inc.||HPQ||July 24|
|Advanced Micro Devices, Inc.||AMD||July 23|
|Best Buy Co., Inc.||BBY||July 22|
|iShares Europe ETF||IEV||July 21|
|Materials Select Sector SPDR||XLB||July 20|
|Caterpillar, Inc.||CAT||July 20|
|Monster Beverage Corp.||MNST||July 20|
|iShares U.S. Home Construction ETF||ITB||July 17|
|Progressive Corp.||PGR||July 17|
|Livongo Health, Inc.||LVGO||July 17|
|Roku, Inc.||ROKU||July 16|
|Catalent, Inc.||CTLT||July 16|
|Cognizant Technology Solutions, Inc.||CTSH||July 16|
|Health Care Select Sector SPDR||XLV||July 16|
|Consumer Staples Select Sector SPDR||XLP||July 15|
|Home Depot, Inc.||HD||July 15|
|Costco Wholesale Corp.||COST||July 15|
|Kirkland Lake Gold, Ltd.||KL||July 15|
|Air Products & Chemicals, Inc.||APD||July 14|
|Consumer Discretionary Select Sector SPDR||XLY||July 13|
|Alphabet, Inc.||GOOGL||July 13|
|Sony Corp.||SNE||July 13|
|SunPower Corp.||SPWR||July 13|
|D.R.Horton, Inc.||DHI||July 9|
|Taylor Morrison Home Corp.||TMHC||July 9|
|LGI Homes, Inc.||LGIH||July 8|
|Walmart, Inc.||WMT||July 8|
|J.B. Hunt Transport Services, Inc.||JBHT||July 8|
|Big Lots, Inc.||BIG||July 1|
|Tandem Diabetes Care, Inc.||TNDM||July 1|
|Dell Technologies, Inc.||DELL||June 30|
|Yeti Holdings, Inc.||YETI||June 25|
|Danaher Corp.||DHR||June 24|
|First Solar, Inc.||FSLR||June 22|
|Lowe’s Companies||LOW||June 19|
|Fiverr International, Ltd.||FVRR||June 19|
|Etsy, Inc.||ETSY||June 17|
|Williams-Sonoma, Inc.||WSM||June 9|
|HubSpot, Inc.||HUBS||June 8|
|Square, Inc.||SQ||June 8|
|United Parcel Service, Inc.||UPS||June 5|
|FedEx Corp.||FDX||June 3|
|SPDR S&P Retail ETF||XRT||June 3|
|iShares MSCI Japan ETF||EWJ||May 29|
|SolarEdge Technologies, Inc.||SEDG||May 29|
|Synopsis, Inc.||SNPS||May 27|
|iShares Silver Trust||SLV||May 15|
|Agnico Eagle Mines, Ltd.||AEM||May 15|
|Agilent Technologies, Inc.||A||May 15|
|Halozyme Therapeutics, Inc.||HALO||May 15|
|Qualcomm, Inc.||QCOM||May 12|
|Kinross Gold Corp.||KGC||May 11|
|Salesforce.com, Inc.||CRM||May 8|
|Facebook, Inc.||FB||May 7|
|Spotify Technology S.A.||SPOT||May 5|
|Old Dominion Freight Line, Inc.||ODFL||Apr. 29|
|Dollar General Corp.||DG||Apr. 28|
|ServiceNow, Inc.||NOW||Apr. 27|
|Five9, Inc.||FIVN||Apr. 24|
|Chewy, Inc.||CHWY||Apr. 24|
|Tesla, Inc.||TSLA||Apr. 23|
|Shopify, Inc.||SHOP||Apr. 23|
|VanEck Vectors Semiconductor ETF||SMH||Apr. 17|
|Veeva Systems, Inc.||VEEV||Apr. 17|
|Okta, Inc.||OKTA||Apr. 16|
|Target Corp.||TGT||Apr. 16|
|Netflix, Inc.||NFLX||Apr. 14|
|VanEck Vectors Gold Miners ETF||GDX||Apr. 14|
|Invesco QQQ Trust||QQQ||Apr. 14|
|DocuSign, Inc.||DOCU||Apr. 3|
|Zscaler, Inc.||ZS||Apr. 3|
|Apple, Inc.||AAPL||Mar. 27|
|Nvidia Corp.||NVDA||Mar. 27|
|Amazon.com, Inc.||AMZN||Mar. 26|
|Zoom Video Communications, Inc.||ZM||Mar. 19|
|iShares MSCI Emerging Markets ETF||EEM||Mar. 19|
|Newmont Corp.||NEM||Jan. 13|
|SPDR Gold Shares ETF||GLD||Jan. 2|
|Microsoft Corp.||MSFT||Feb. 22|
|* Click each symbol for current chart.|