Technically speaking, the major U.S. benchmarks continue to trend higher, rising amid a still broadly constructive 2021 start.
More immediately, each big three U.S. benchmark has briefly tagged its latest record high early Tuesday, rising amid bull-flag breakout attempts that remain underway.
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 has cleared the range top, edging to its latest record high.
The prevailing upturn punctuates a bull flag, the prior relatively tight five-session range.
Tactically, the breakout point, circa 3,925, is followed by the former range bottom (3,885).
Meanwhile, the Dow Jones Industrial Average US:DJIA has sustained a recently less decisive break to record territory.
Nonetheless, the Dow’s tight range underpinned by the breakout point — the 31,236-to-31,272 area — is technically constructive.
Against this backdrop, the Nasdaq Composite US:COMP is challenging its range top.
Consider that Friday’s session high (14,102) registered slightly under its record high (14,109).
The index briefly followed through early Tuesday, tagging previously uncharted territory. As always, it’s the session close that matters. A bull-flag breakout attempt is in play.
Widening the view to six months adds perspective.
On this wider view, the Nasdaq is consolidating a sharp early-February rally. Recall the initially decisive 2.0% breakout confirms its primary uptrend.
Tactically, the Nasdaq’s first notable floor matches the breakout point (13,730).
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.
The prevailing upturn marks about a 0.6% breakout, not yet confirming its primary trend.
Nonetheless, the sharp V-shaped reversal from last-ditch support (29,964) — and grinding-higher follow-through — are technically constructive.
Recall that the former range top pivots to support — the 31,236-to-31,272 area — levels also detailed on the hourly chart.
Meanwhile, the S&P 500 has slightly extended its February break to record territory.
Recall that the prevailing flag — the S&P’s tight mid-month range — is a bullish continuation pattern.
The bigger picture
Collectively, the major U.S. benchmarks are acting well technically.
On a headline basis, each big three benchmark has asserted a flag-like pattern — tight one-week ranges — signaling muted selling pressure near record high.
Against this backdrop, each index has at least briefly tagged a record high early Tuesday. Breakout attempts are underway.
Moving to the small-caps, the iShares Russell 2000 ETF US:IWM is digesting the most decisive break to record territory of the widely-tracked U.S. benchmarks.
As detailed repeatedly, the initial spike marked a massive two standard deviation breakout, encompassing four straight closes atop the 20-day Bollinger bands.
Separately, the early-month rally marked a strong 4.8% breakout, confirming its primary uptrend.
Though near-term extended — and an overdue sideways chopping around phase is underway — the statistically unusual rally is likely longer-term bullish.
Meanwhile, the SPDR S&P MidCap 400 ETF US:MDY has slightly extended a less decisive breakout.
Recall that the prevailing upturn originates from the breakout point (425.30), an area matching the 2020 peak.
Looking elsewhere, the SPDR Trust S&P 500 US:SPY has fractionally extended its uptrend amid grinding-higher price action.
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 has narrowly tagged its latest record high to punctuate a five-session flag pattern. A breakout attempt is in play.
On further strength, a near-term target continues to project from the S&P’s late-January range to the 4,010 area, about 1.9% above current levels.
Conversely, the S&P’s breakout point (3,870) is followed by an inflection point in the 3,830 area.
Delving deeper, the 50-day moving average, currently 3,775, 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” likely raising a caution flag.
Beyond specific levels, the S&P 500’s intermediate-term uptrend remains firmly-grounded based on today’s backdrop.
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 Financial Select Sector SPDR US:XLF is rattling the cage on a potential breakout. (Yield = 2.0%.)
Specifcially, the group has rallied to the range top, rising to challenge its record high (31.62) established last month.
The tight prevailing one-week range signals muted selling pressure near resistance, improving the chances of an eventual breakout. An intermediate-term target projects to the 33.50 area on follow-through.
Meanwhile, the iShares Transportation Average ETF US:IYT has also reached a major technical test.
Namely, the group is challenging its record high matching the January peak (232.97). An intermediate-term target projects to the 250 area on follow-through.
(The January low (212.80), established Jan. 29, precisely matched last-ditch support.)
Combined, the transports and financials are traditional sector leaders. The tandem prevailing breakout attempts signal a firmly-grounded U.S. sub-sector backdrop.
Initially profiled Dec. 2, Analog Devices, Inc. US:ADI has returned 14.2% and remains well positioned.
Technically, the shares have rallied to the range top, rising to press record territory.
The prevailing upturn punctuates a successful test of the breakout point (146.10) and the 50-day moving average. Tactically, a breakout attempt is in play barring a violation of near-term support, circa 154.25.
Inphi Corp. US:IPHI is a well positioned large-cap semiconductor name.
As illustrated, the shares have staged an orderly pullback from record highs, finding support slightly above the breakout point. The prevailing upturn positions the shares for a potential retest of the January peak.
Tactically, the 50-day moving average, currently 164.40, has marked a bull-bear inflection point. The prevailing uptrend is comfortably intact barring a violation.
Public since March 2018, Lyft, Inc. US:LYFT is a well positioned large-cap name.
Technically, the shares have staged a nearly straightline February rally, knifing to 17-month highs. The upturn has been punctuated by last week’s strong-volume spike after the company’s fourth-quarter results.
Though near-term extended, and due to consolidate, the shares are attractive on a pullback. Tactically, gap support (55.26) is followed by the firmer breakout point (50.70).
More broadly, the prevailing upturn punctuates an orderly two-month range hinged to the November vaccine-fueled gap atop the 200-day moving average. Bullish price action.
Finally, Builders FirstSource, Inc. US:BLDR — initially profiled Aug. 18 — has returned 44.6% and remains well positioned.
Earlier this month, the shares rallied to record highs, edging atop resistance matching the December and January peaks.
The subsequent flag — the tight one-week range — is a bullish continuation pattern, likely positioning the shares to extend the uptrend. Tactically, the breakout point (42.40) is closely followed by the post-breakout low (42.12) and the ascending 50-day moving average, currently 39.95.
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|
|Intel Corp.||INTC||Feb. 12|
|KLA Corp.||KLAC||Feb. 12|
|Pinterest, Inc.||PINS||Feb. 12|
|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.|