Broadly speaking, the major U.S. benchmarks are off to a constructive October start, reclaiming key technical levels.
Against this backdrop, the S&P 500 has asserted a bullish-leaning intermediate-term bias, rising to three-week highs from a successful test of major support (3,328).
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 extended its rally attempt, reaching three-week highs.
The prevailing upturn punctuates last week’s range, underpinned by major support (3,328).
From current levels, the breakout point (3,393) marks a near-term floor, a level matching the February peak.
Similarly, the Dow Jones Industrial Average
has cleared its range top.
Here again, the breakout punctuates a successful test of major support (27,447) a level that underpinned last week’s price action on a closing basis.
More immediately, the 28,000 mark remains an inflection point.
Meanwhile, the Nasdaq Composite
is challenging its range top.
The prevailing upturn punctuates a jagged, but successful, test of the 50-day moving average, an area better illustrated on the daily chart below.
Tactically, a notable floor matches the mid-September range top (11,245).
Widening the view to six months adds perspective.
On this wider view, the Nasdaq has extended its rally attempt, notching a “higher high” versus the mid-September peak (11,245).
The prevailing upturn punctuates a successful test of the 50-day moving average, currently 11,113, a recent bull-bear inflection point.
Tactically, the sustained break atop the 50-day moving average — combined with a “higher high” to start October — signals a bullish-leaning intermediate-term bias.
Looking elsewhere, the Dow Jones Industrial Average has extended a rally atop key resistance.
The specific area matches the breakdown point (27,580) and the 50-day moving average, currently 27,684.
The Dow’s sustained rally atop resistance signals a bullish-leaning intermediate-term bias. Recall that the 50-day moving average defined the May, June and late-July lows.
Meanwhile, the S&P 500 has also extended its rally attempt, edging atop next resistance (3,393).
In the process, the S&P has reclaimed its 50-day moving average, currently 3,369.
Slightly more broadly, the upturn punctuates a successful test of major support (3,328), a bull-bear inflection point detailed repeatedly.
The bigger picture
Collectively, the major U.S. benchmarks are acting well technically to start October, and the fourth quarter.
On a headline basis, the S&P 500 and Dow industrials have extended their rally attempts, rising from successful tests of major support — S&P 3,328 and Dow 27,447. (See the hourly charts.)
Moving to the small-caps, the iShares Russell 2000 ETF has extended a rally from the September low.
In the process, the small-cap benchmark has reclaimed its 50-day moving average and the breakdown point (153.39).
The breakout neutralizes the September downdraft. Tactically, additional overhead matches the August peak (159.82).
Meanwhile, the SPDR S&P MidCap 400 ETF has also reclaimed its 50-day moving average.
The prevailing follow-through punctuates an October upturn initially fueled by increased volume.
Looking elsewhere, the SPDR Trust S&P 500
has also rallied atop major resistance.
The specific area matches its former breakout point (338.35) and the 50-day moving average, currently 336.35.
Recall that the prevailing upturn originates from major support matching the June peak.
Placing a finer point on the S&P 500, its near-term backdrop is increasingly straightforward.
To start, the S&P has rallied from major support (3,328), a bull-bear inflection point detailed repeatedly. This area effectively underpinned last week’s range.
Within the range, the 50-day moving average, currently 3,369, remains an inflection point.
Slightly more broadly, the S&P has edged atop the February peak (3,393), a level defining its former breakout point. This area pivots to near-term support.
On further strength, follow-through above the mid-September range top, circa 3,425, would mark a “higher high” incrementally strengthening the bull case.
Conversely, the S&P 500’s 50-day moving average — and major support (3,328) — remain useful bull-bear inflection points. A sustained posture higher signals a bullish-leaning intermediate-term bias.
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 10-year Treasury note yield
has knifed to its best levels since June, rising amid a risk-on trade. (Treasury yields and bond prices are inversely correlated. Lower bond prices signal increased investor risk appetite.)
The October upturn punctuates a tight seven-week range, underpinned by the 50-day moving average.
Tactically, the upturn places the yield’s range top (0.79) — a level closely matching the April peak — firmly under siege. Tuesday’s early session high (0.792) has matched resistance.
As detailed repeatedly, follow-through above the range top would open the path to a less-charted patch amid a developing double bottom. Such a move could be punctuated by swift upside follow-through. (See the mid-June spike.)
Moving to U.S. sectors, the iShares Transportation Average
is acting well technically.
The group initially spiked two months ago, staging a steep early-August breakout. The upturn marked a two standard deviation breakout, encompassing four straight closes atop the 20-day Bollinger bands.
More immediately, the group has asserted an orderly six-week range — a bullish continuation pattern — positioning it to build on the steep August rally.
Tactically, trendline support closely tracks the 50-day moving average, and is followed by the former breakout point (190.00). A posture higher signals a bullish intermediate-term bias.
Moving to specific names, Motorola Solutions, Inc.
is a well positioned large-cap name.
Technically, the shares are challenging seven-month highs, rising from a double bottom defined by the May and July lows.
The prevailing tight one-week range signals muted selling pressure near resistance, improving the chances of eventual follow-through. Tactically, a breakout attempt is in play barring a violation of the October low (153.70).
Also notice the pending golden cross — or bullish 50-day/200-day moving average crossover — signaling that the intermediate-term uptrend has overtaken the longer-term trend.
is a large-cap retailer coming to life.
As illustrated, the shares have knifed to 52-week highs, clearing resistance matching the September peak. The upturn originates from trendline support closely tracking the 50-day moving average.
Though near-term extended, and due to consolidate, a pullback toward the breakout point (18.40) would offer an attractive entry.
More broadly, the shares are well positioned on the three-year chart, edging atop major resistance matching the late-2019 range top.
Finally, Sunnova Energy International, Inc.
— public since July 2019 — is a mid-cap developer of residential-solar and energy-storage solutions.
Late last month, the shares knifed to record highs, clearing the August peak amid a volume spike.
The subsequent pullback has been underpinned by the breakout point (28.60), placing the shares 14.9% under the October peak.
Tactically, deeper support matches the August and September gaps, circa 27.20. A sustained posture higher signals a 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.
|Company||Symbol* (Click symbol for chart.)||Date Profiled|
|Ross Stores, Inc.||ROST||Oct. 5|
|SBA Communications Corp.||SBAC||Oct. 5|
|Marvell Technology Group,Ltd.||MRVL||Oct. 5|
|Qorvo, Inc.||QRVO||Oct. 2|
|NCR Corp.||NCR||Oct. 2|
|LGI Homes, Inc.||LGIH||Oct. 2|
|Amgen, Inc.||AMGN||Oct. 1|
|SailPoint Technology Holdings, Inc.||SAIL||Oct. 1|
|Dell Technologies, Inc.||DELL||Sept. 30|
|Martin Marietta Materials, Inc.||MLM||Sept. 30|
|Whirlpool Corp.||WHR||Sept. 29|
|Abercrombie & Fitch Co.||ANF||Sept. 29|
|American Eagle Outfitters||AEO||Sept. 28|
|Twitter, Inc.||TWTR||Sept. 28|
|Blueprint Medicines Co.||BPMC||Sept. 28|
|Zendesk, Inc.||ZEN||Sept. 23|
|Datadog, Inc.||DDOG||Sept. 23|
|Scientific Games Corp.||SGMS||Sept. 23|
|Maxar Technologies, Inc.||MAXR||Sept. 18|
|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|
|Celanese Corp.||CE||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|
|Johnson Controls International||JCI||Aug. 21|
|Adobe, Inc.||ADBE||Aug. 20|
|Canadian Solar, Inc.||CSIQ||Aug. 20|
|General Motors Co.||GM||Aug. 20|
|Starbucks Corp.||SBUX||Aug. 18|
|Builders FirstSource, Inc.||BLDR||Aug. 18|
|Steel Dynamics, Inc.||STLD||Aug. 17|
|Elanco Animal Health, Inc.||ELAN||Aug. 17|
|Brinker International, Inc.||EAT||Aug. 13|
|Enphase Energy, Inc.||ENPH||Aug. 13|
|Nike, Inc.||NKE||Aug. 11|
|Nucor Corp.||NUE||Aug. 11|
|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|
|Kansas City Southern||KSU||Aug. 6|
|Industrial Select Sector SPDR||XLI||Aug. 6|
|Verizon Communications, Inc.||VZ||Aug. 5|
|Sunrun, Inc.||RUN||Aug. 5|
|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|
|Toll Brothers, Inc.||TOL||July 27|
|Advanced Micro Devices, Inc.||AMD||July 23|
|Best Buy Co., Inc.||BBY||July 22|
|Materials Select Sector SPDR||XLB||July 20|
|Caterpillar, Inc.||CAT||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|
|Cognizant Technology Solutions, Inc.||CTSH||July 16|
|Consumer Staples Select Sector SPDR||XLP||July 15|
|Home Depot, Inc.||HD||July 15|
|Costco Wholesale Corp.||COST||July 15|
|Air Products & Chemicals, Inc.||APD||July 14|
|Consumer Discretionary Select Sector SPDR||XLY||July 13|
|SunPower Corp.||SPWR||July 13|
|Walmart, Inc.||WMT||July 8|
|Big Lots, Inc.||BIG||July 1|
|Tandem Diabetes Care, Inc.||TNDM||July 1|
|Dell Technologies, Inc.||DELL||June 30|
|Danaher Corp.||DHR||June 24|
|Lowe’s Companies||LOW||June 19|
|Fiverr International, Ltd.||FVRR||June 19|
|Etsy, Inc.||ETSY||June 17|
|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|
|Agilent Technologies, Inc.||A||May 15|
|Qualcomm, Inc.||QCOM||May 12|
|Salesforce.com, Inc.||CRM||May 8|
|Facebook, Inc.||FB||May 7|
|Spotify Technology S.A.||SPOT||May 5|
|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|
|VanEck Vectors Semiconductor ETF||SMH||Apr. 17|
|Veeva Systems, Inc.||VEEV||Apr. 17|
|Okta, Inc.||OKTA||Apr. 16|
|Target Corp.||TGT||Apr. 16|
|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|
|Zoom Video Communications, Inc.||ZM||Mar. 19|
|iShares MSCI Emerging Markets ETF||EEM||Mar. 19|
|SPDR Gold Shares ETF||GLD||Jan. 2|
|Microsoft Corp.||MSFT||Feb. 22|
|* Click each symbol for current chart.|