U.S. stocks are mixed early Friday, largely treading water ahead of a three-day weekend.
Against this backdrop, each big three U.S. benchmark has asserted a flag pattern, an orderly four-session range near record highs. Range-bound price action is bullish against the prevailing backdrop.
Before detailing the U.S. markets’ wider view, the S&P 500’s US:SPX hourly chart highlights the past two weeks.
As illustrated, the S&P remains in consolidation mode, asserting an orderly four-session range.
Tactically, the week-to-date low (3,885) is followed by the firmer breakout point (3,870).
Meanwhile, the Dow Jones Industrial Average US:DJIA has sustained a less decisive break to record territory.
But here again, the orderly four-session range is technically constructive.
Tactically, recall that the former range top — the 31,236-to-31,272 area — marks a notable floor.
Thursday’s session low (31,244) registered nearby amid a successful retest.
Against this backdrop, the Nasdaq Composite US:COMP has also asserted a four-session holding pattern.
Tactically, the week-to-date low (13,845) is followed by the firmer breakout point, circa 13,730.
Combined, each big three U.S. benchmark has asserted a bull flag, the orderly four-session range near record highs. Constructive price action.
Widening the view to six months adds perspective.
On this wider view, the Nasdaq has sustained a decisive break to record territory.
Though near-term extended — and a consolidation phase is underway — the Nasdaq’s 2.0% technical breakout confirms its primary uptrend.
Tactically, the breakout point (13,730) marks the Nasdaq’s first notable floor from current levels.
More broadly, the prevailing upturn originates from major support matching the 2020 peak (12,973).
Looking elsewhere, the Dow Jones Industrial Average has sustained a less decisive break to record highs.
Still, the Dow’s sharp V-shaped reversal from last-ditch support (29,964) has been punctuated by muted mid-month selling pressure. Bullish price action.
To reiterate, a notable floor matches the former range top — the 31,236-to-31,272 area — levels that have underpinned four straight closes.
Meanwhile, the S&P 500 is also digesting a steep February rally to previously uncharted territory.
Consider that its 1.2% breakout has been punctuated by a bull flag, the relatively tight four-session range.
The bigger picture
As detailed above, the major U.S. benchmarks remain in consolidation mode, digesting early-month rallies to record territory.
Against this backdrop, each big three benchmark has asserted a flag-like pattern, the orderly four-session ranges amid still muted selling pressure. Bullish price action. (See the hourly charts.)
Moving to the small-caps, the iShares Russell 2000 ETF US:IWM is consolidating the most decisive break to record territory.
As detailed repeatedly, the initial spike marked a statistically unusual two standard deviation breakout, encompassing four straight closes atop the 20-day Bollinger bands.
Perhaps more straightforwardly, the small-cap benchmark’s 4.8% breakout confirms its primary uptrend.
Tactically, the “expected” cooling-off period is underway amid a still firmly-bullish longer-term backdrop.
Meanwhile, the SPDR S&P MidCap 400 ETF US:MDY has modestly extended a less decisive breakout.
The prevailing upturn has encompassed a single close atop the 20-day volatility bands. (Also see the early-November and early-January breaks atop the bands.)
Slightly more broadly, the February rally originates from the breakout point (425.30), an area matching the 2020 peak.
Looking elsewhere, the SPDR Trust S&P 500 US:SPY has also sustained its February breakout.
Recall that the prevailing upturn originates from major support closely matching the 50-day moving average.
Placing a finer point on the S&P 500, the index remains range-bound, digesting its break to record territory.
Tactically, the week-to-date low (3,885) is followed by the firmer breakout point (3,870). Delving deeper, the 3,830 area remains an inflection point.
More broadly, the S&P 500 has asserted a bull flag, the orderly four-session range near record highs.
On further strength, a near-term target continues to project from the S&P’s late-January range to the 4,010 area, about 2.5% above current levels.
Conversely, the S&P’s breakout point (3,870) is followed by deeper support in the 3,830 area.
Delving deeper, the 50-day moving average, currently 3,770, is followed by the former range bottom (3,750).
Also recall that likely last-ditch support points match the December gap (3,723) and late-January low (3,694). An eventual violation would mark a material “lower low” raising a caution flag.
Beyond technical levels, the S&P 500’s intermediate-term bias remains comfortably bullish, based on today’s backdrop.
Friday’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.
Initially profiled April 17, the VanEck Vectors Semiconductor ETF US:SMH has returned 90.7% and remains well positioned.
Technically, the group has cleared resistance matching the January peak, reaching record highs on increased volume. An intermediate-term target projects to the 266 area.
Conversely, the breakout point, circa 246.00, is followed by trendline support and the slightly deeper 50-day moving average. The group’s intermediate-term bias remains bullish barring a violation.
Moving to specific names, Intel Corp. US:INTC is a former, and potential future, semiconductor sector bellwether, as well as a Dow 30 component. (Yield = 2.3%.)
The shares initially spiked one month ago, gapping higher after the company announced the appointment of a new CEO. The breakout punctuated a massive bullish island reversal defined by the July and January gaps. (See the one-year chart.)
More immediately, the subsequent pullback has been underpinned by the 200-day moving average, and punctuated by February follow-through.
Tactically, a notable floor matches the July gap (60.00) and is closely followed by near-term support, circa 59.30. A posture higher signals a firmly-bullish bias.
Also notice the pending golden cross — or bullish 50-day/200-day moving average crossover — an event that will likely signal Friday or Tuesday. (The trending indicators are currently separated by just six hundredths of a point.)
KLA Corp. US:KLAC is a well positioned large-cap chip equipment name.
As illustrated, the shares have knifed to record highs, clearing the January peak amid a volume spike. The upturn punctuates a one-month range — hinged to the steep early-January rally — laying the groundwork for potentially material follow-through.
Tactically, the breakout point (316.90) is followed by a near-term floor, circa 305.50. The prevailing rally attempt is firmly-intact barring a violation.
Pinterest, Inc. US:PINS is a large-cap name coming to life.
Earlier this month, the shares knifed to record highs, rising after the company’s strong fourth-quarter results. The subsequent pullback has been comparably flat, fueled by decreased volume.
More immediately, the shares spiked Thursday, rising amid reports the company has discussed a potential acquisition by Microsoft. The upturn has been punctuated by a nominal record high.
Though near-term extended, the shares are attractive on a pullback. Tactically, the post-breakout low (77.90) is followed by the firmer breakout point (76.00).
Finally, Calix, Inc. US:CALX — initially profiled Dec. 17 — has returned 21.3% and remains well positioned.
As illustrated, the shares have rallied to the range top, rising to challenge record highs on increased volume. An intermediate-term target projects to the 42 area on follow-through.
Conversely, the 50-day moving average has defined the recent trend and is rising toward gap support (36.15). A breakout attempt is in play 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|
|Nvidia Corp.||NVDA||Feb. 11|
|Veeva Systems, Inc.||VEEV||Feb. 11|
|Helmerich & Payne, Inc.||HP||Feb. 11|
|Zoom Video Communications, Inc.||ZM||Feb. 10|
|Hologic, Inc.||HOLX||Feb. 10|
|McDonald’s Corp.||MCD||Feb. 10|
|U.S. Global Jets ETF||JETS||Feb. 9|
|Lowe’s Companies, Inc.||LOW||Feb. 9|
|Motorola Solutions, Inc.||MSI||Feb. 9|
|iShares U.S. Home Construction ETF||ITB||Feb. 8|
|Lennar Corp.||LEN||Feb. 8|
|Nike, Inc.||NKE||Feb. 8|
|Beyond Meat, Inc.||BYND||Feb. 8|
|Cisco Systems, Inc.||CSCO||Feb. 5|
|Datadog, Inc.||DDOG||Feb. 5|
|Appian Corp.||APPN||Feb. 4|
|Diamondback Energy, Inc.||FANG||Feb. 4|
|Gogo, Inc.||GOGO||Feb. 4|
|Wix.com, Ltd.||WIX||Feb. 3|
|CarMax, Inc.||KMX||Feb. 3|
|Toll Brothers, Inc.||TOL||Feb. 2|
|Eagle Materials, Inc.||EXP||Feb. 2|
|Avis Budget Group, Inc.||CAR||Feb. 1|
|Capital One Financial Corp.||COF||Jan. 29|
|NetApp, Inc.||NTAP||Jan. 29|
|Aptiv, plc||APTV||Jan. 29|
|Rio Tinto Group||RIO||Jan. 26|
|Sorrento Therapeutics, Inc.||SRNE||Jan. 26|
|Netflix, Inc.||NFLX||Jan. 25|
|Cummins, Inc.||CMI||Jan. 25|
|Invesco Solar ETF||TAN||Jan. 22|
|Magna International, Inc.||MGA||Jan. 22|
|M.D.C. Holdings, Inc.||MDC||Jan. 22|
|Zebra Technologies Corp.||ZBRA||Jan. 14|
|Chegg, Inc.||CHGG||Jan. 11|
|Macy’s, Inc.||M||Jan. 11|
|Nexstar Media Group, Inc.||NXST||Jan. 11|
|iShares Transportation Average ETF||IYT||Jan. 11|
|Energy Select Sector SPDR||XLE||Jan. 8|
|Teledoc Health, Inc.||TDOC||Jan. 8|
|Skyworks Solutions, Inc.||SWKS||Jan. 7|
|Financial Select Sector SPDR||XLF||Jan. 7|
|Synaptics, Inc.||SYNA||Jan. 4|
|Sunrun, Inc.||RUN||Dec. 23|
|ShockWave Medical, Inc.||SWAV||Dec. 23|
|JPMorgan Chase & Co.||JPM||Dec. 22|
|Ballard Power Systems, Inc.||BLDP||Dec. 21|
|LivePerson, Inc.||LPSN||Dec. 21|
|United Therapeutics Corp.||UTHR||Dec. 21|
|Shopify, Inc.||SHOP||Dec. 18|
|CyberArk Software Ltd.||CYBR||Dec. 18|
|Calix, Inc.||CALX||Dec. 17|
|Elastic N.V.||ESTC||Dec. 17|
|Tenet Healthcare Corp.||THC||Dec. 16|
|Williams-Sonoma, Inc.||WSM||Dec. 15|
|iShares Nasdaq Biotechnology ETF||IBB||Dec. 15|
|SDPR S&P Regional Banking ETF||KRE||Dec. 14|
|Etsy, Inc.||ETSY||Dec. 14|
|Plug Power, Inc.||PLUG||Dec. 9|
|F5 Networks, Inc.||FFIV||Dec. 8|
|Emerson Electric Co.||EMR||Dec. 8|
|Zscaler, Inc.||ZS||Dec. 7|
|Fortinet, Inc.||FTNT||Dec. 7|
|Kulicke and Soffa Industries, Inc.||KLIC||Dec. 7|
|Dillard’s, Inc.||DDS||Dec. 4|
|Spotify Technology S.A.||SPOT||Dec. 3|
|Valero Energy Corp.||VLO||Dec. 3|
|Analog Devices, Inc.||ADI||Dec. 2|
|Sonos, Inc.||SONO||Dec. 1|
|American Airlines Group, Inc.||AAL||Nov. 30|
|Zillow Group, Inc.||ZG||Nov. 23|
|Bank of America Corp.||BAC||Nov. 20|
|SPDR S&P Oil & Gas Exploration and Production ETF||XOP||Nov. 20|
|MetLife, Inc.||MET||Nov. 19|
|Kohl’s Corp.||KSS||Nov. 18|
|Applied Materials, Inc.||AMAT||Nov. 17|
|RingCentral, Inc.||RNG||Nov. 13|
|Regions Financial Corp.||RF||Nov. 13|
|Snap, Inc.||SNAP||Nov. 9|
|Norfolk Southern Corp.||NSC||Nov. 9|
|Communications Services Select Sector SPDR||XLC||Nov. 5|
|Health Care Select Sector SPDR||XLV||Nov. 5|
|Alphabet, Inc.||GOOGL||Nov. 5|
|Keysight Technologies, Inc.||KEYS||Nov. 4|
|8×8, Inc.||EGHT||Nov. 3|
|Exact Sciences Corp.||EXAS||Nov. 2|
|Universal Display Corp.||OLED||Nov. 2|
|Dentsply Sirona, Inc.||XRAY||Oct. 27|
|Maxim Integrated Products, Inc.||MXIM||Oct. 21|
|The Travelers Companies, Inc.||TRV||Oct. 21|
|Micron Technology, Inc.||MU||Oct. 20|
|Vulcan Materials Co.||VMC||Oct. 19|
|ON Semiconductor Corp.||ON||Oct. 16|
|Ford Motor Co.||F||Oct. 15|
|First Solar, Inc.||FSLR||Oct. 13|
|SPDR S&P Homebuilders ETF||XHB||Oct. 9|
|Shake Shack, Inc.||SHAK||Oct. 9|
|SPDR S&P Biotech ETF||XBI||Oct. 8|
|Twilio, Inc.||TWLO||Oct. 8|
|Cloudflare, Inc.||NET||Oct. 7|
|SailPoint Technology Holdings, Inc.||SAIL||Oct. 1|
|Martin Marietta Materials, Inc.||MLM||Sept. 30|
|Abercrombie & Fitch Co.||ANF||Sept. 29|
|Zendesk, Inc.||ZEN||Sept. 23|
|Scientific Games Corp.||SGMS||Sept. 23|
|Crocs, Inc.||CROX||Sept. 14|
|Five Below, Inc.||FIVE||Sept. 10|
|Eastman Chemical Co.||EMN||Sept. 10|
|Deere & Co.||DE||Aug. 24|
|Johnson Controls International||JCI||Aug. 21|
|Canadian Solar, Inc.||CSIQ||Aug. 20|
|General Motors Co.||GM||Aug. 20|
|Builders FirstSource, Inc.||BLDR||Aug. 18|
|Enphase Energy, Inc.||ENPH||Aug. 13|
|Freeport McMoRan, Inc.||FCX||Aug. 10|
|Industrial Select Sector SPDR||XLI||Aug. 6|
|Penn National Gaming, Inc.||PENN||July 30|
|SPDR S&P Metals & Mining ETF||XME||July 28|
|iShares MSCI South Korea ETF||EWY||July 28|
|Advanced Micro Devices, Inc.||AMD||July 23|
|Materials Select Sector SPDR||XLB||July 20|
|Caterpillar, Inc.||CAT||July 20|
|Roku, Inc.||ROKU||July 16|
|Consumer Discretionary Select Sector SPDR||XLY||July 13|
|SunPower Corp.||SPWR||July 13|
|Danaher Corp.||DHR||June 24|
|Fiverr International, Ltd.||FVRR||June 19|
|Square, Inc.||SQ||June 8|
|SPDR S&P Retail ETF||XRT||June 3|
|iShares MSCI Japan ETF||EWJ||May 29|
|Synopsis, Inc.||SNPS||May 27|
|Agilent Technologies, Inc.||A||May 15|
|Five9, Inc.||FIVN||Apr. 24|
|Chewy, Inc.||CHWY||Apr. 24|
|Tesla, Inc.||TSLA||Apr. 23|
|VanEck Vectors Semiconductor ETF||SMH||Apr. 17|
|Okta, Inc.||OKTA||Apr. 16|
|Target Corp.||TGT||Apr. 16|
|Invesco QQQ Trust||QQQ||Apr. 14|
|Apple, Inc.||AAPL||Mar. 27|
|iShares MSCI Emerging Markets ETF||EEM||Mar. 19|
|Microsoft Corp.||MSFT||Feb. 22|
|* Click each symbol for current chart.|