U.S. stocks are lower early Monday, pressured partly amid concerns that a hedge fund’s forced liquidation may have adverse ripple effects.
Against this backdrop, the S&P 500 and Dow industrials have pulled in from their latest record close, even as the Nasdaq Composite vies to simply maintain major support matching the 2020 peak (12,973).
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 rallied toward its range top, rising to conclude last week with a nominal record close.
Tactically, the Feb. peak (3,950) remains an inflection point, and is followed by the 3,915 support.
Conversely, the marquee 4,000 mark remains within view.
Similarly, the Dow Jones Industrial Average US:DJIA has extended a bullish reversal from two-week lows.
In the process, the index has registered a record close, as well as its second-ever close slightly atop the 33,000 mark.
Tactically, near-term inflection points in the 32,500 and 32,800 areas remain in play.
True to recent form, the Nasdaq Composite US:COMP remains the weakest major benchmark.
Still, the index has reclaimed a key bull-bear inflection point matching the 2020 peak (12,973), an area also illustrated below.
A potentially consequential retest remains underway to start this week.
Widening the view to six months adds perspective.
On this wider view, the Nasdaq has narrowly maintained major support (12,973). This area matches the 2020 peak — as well as the early-March breakdown point — and remains a useful intermediate-term bull-bear gauge.
Delving deeper, significant support (12,607) closely matches the March closing low (12,609), an area detailed repeatedly.
Looking elsewhere, the Dow Jones Industrial Average remains the strongest major benchmark.
Recall that last week’s low (32,071) registered above the breakout point (32,009) amid a relatively orderly pullback from the March peak.
The subsequent reversal from support has been swiftly punctuated by a nominal record close.
Bullish momentum is intact. The directionally sharp March rallies encompass a comparably sluggish mid-month pullback.
Meanwhile, the S&P 500 has staged a bullish reversal from its 50-day moving average.
Here again, the sharp rally from the late-March low has been punctuated by a nominal record close. Constructive price action.
The bigger picture
Collectively, the major U.S. benchmarks remain in divergence mode, though amid a still largely bullish bigger-picture backdrop.
On a headline basis, the S&P 500 and Dow industrials have registered bullish reversals from major support, rising to tag nominal record closes. (See the daily charts.)
Meanwhile, the characteristically lagging Nasdaq Composite has thus far maintained major support matching the 2020 peak (12,973) though an extended retest remains underway.
Moving to the small-caps, the iShares Russell 2000 ETF US:IWM has extended its bullish reversal from two-week lows.
A retest of the 50-day moving average, currently 220.55, remains underway.
Delving slightly deeper, the range bottom (216.70) marks a familiar inflection point, detailed previously.
Meanwhile, the SPDR S&P MidCap 400 ETF US:MDY remains incrementally stronger.
As illustrated, the MDY has reclaimed its breakdown point, rising within striking distance of record highs.
The prevailing upturn punctuates a successful test of the former range bottom, an area roughly matching the 50-day moving average.
Looking elsewhere, the SPDR Trust S&P 500 US:SPY has also reclaimed its breakdown point, an area matching the February peak.
The strong-volume bullish reversal effectively originates from the 50-day moving average.
Also recall the SPY has struggled to break too far from its prevailing seven-week range.
Placing a finer point on the S&P 500, the index has reversed sharply from two-week lows.
The upturn punctuates a jagged test of major support (3,870) and the 50-day moving average, currently 3,877.
Within the range, the S&P’s former breakdown point (3,950) remains an inflection point.
More broadly, the S&P 500 has weathered a garden-variety late-March pullback.
The downturn has been underpinned by major support (3,870) and punctuated by a sharp two-session reversal to tag a record close. Bullish momentum is intact.
Tactically, near- to intermediate-term targets project from the late-March downturn to the 4,050 and 4,085 areas.
Beyond technical levels, the S&P 500’s intermediate-term bias remains comfortably bullish as the index vies to confirm its uptrend with more decisive follow-through to record territory. Wednesday’s monthly close also concludes the first-quarter and will likely add color.
Monday’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.
In the process, the group has cleared its range top, rising to record highs.
Tactically, the breakout confirms the group’s recent trend shift. An intermediate-term target projects to the 73 area.
More broadly, the group is well positioned on the three-year chart, rising from a continuation pattern hinged to the massive V-shaped 2020 bullish reversal.
Meanwhile, the iShares U.S. Real Estate ETF US:IYR has also come to life technically. (Yield = 2.2%.)
Specifically, the group has reached 52-week highs, clearing resistance matching the mid-March peak. The prevailing upturn punctuates a bull-flag breakout. A near-term target projects to the 94 area.
More broadly, the tandem surge in these rate-sensitive groups — real estate and the consumer staples sector — is consistent with the view that Treasury yields may have asserted at least an intermediate-term plateau.
Moving to specific names, Texas Instruments, Inc. US:TXN is a well positioned large-cap semiconductor name. (Yield = 2.2%.)
Technically, the shares have knifed to all-time highs, clearing resistance matching the February peak. The upturn punctuates a two-month range, and a V-shaped reversal from the March low.
Though near-term extended, and due to consolidate, the sharp rally is longer-term bullish. Tactically, the breakout point (181.80) pivots to well-defined support.
NXP Semiconductors N.V. US:NXPI is a large-cap Netherlands-based semiconductor name.
Earlier this month, the shares gapped sharply higher, rising after the March 15 announcement of the company’s pending addition to the S&P 500. (The company was formally added to the S&P 500 on March 22.)
The ensuing pullback has been punctuated by a rally toward the former range top.
Tactically, the 50-day moving average, currently 183.70, is rising toward gap support (189.50). The prevailing uptrend is comfortably intact barring a violation.
Finally, Coca-Cola Co. US:KO is a Dow 30 component coming to life technically. (Yield = 3.2%.)
As illustrated, the shares have knifed to nearly three-month highs, rising to the former range. The breakout punctuates a cup-and-handle defined by the January and March lows.
Tactically, the breakout point (51.90) roughly matches the November gap (52.07) and pivots to support. The prevailing recovery attempt is 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|
|Home Depot, Inc.||HD||Mar. 26|
|Ferrari N.V.||RACE||Mar. 26|
|Funko Inc||FNKO||Mar. 26|
|Cisco Systems, Inc.||CSCO||Mar. 25|
|Steel Dynamics, Inc.||STLD||Mar. 25|
|Procter & Gamble Co.||PG||Mar. 25|
|Consumer Staples Select Sector SPDR||XLP||Mar. 25|
|iShares U.S. Home Construction ETF||ITB||Mar. 23|
|Lennar Corp.||LEN||Mar. 23|
|Jabil Circuit, Inc.||JBL||Mar. 23|
|Dish Network Corp.||DISH||Mar. 23|
|UnitedHealth Group, Inc.||UNH||Mar. 22|
|DraftKings, Inc.||DKNG||Mar. 22|
|Shift4 Payments, Inc.||FOUR||Mar. 19|
|Whirlpool Corp.||WHR||Mar. 19|
|U.S. Bancorp||USB||Mar. 19|
|Nasdaq, Inc.||NDAQ||Mar. 18|
|D.R. Horton, Inc.||DHI||Mar. 18|
|Facebook, Inc.||FB||Mar. 17|
|AutoNation, Inc.||AN||Mar. 17|
|McDonald’s Corp.||MCD||Mar. 16|
|Virtu Financial, Inc.||VIRT||Mar. 16|
|Spirit Airlines, Inc.||SAVE||Mar. 16|
|LKQ Corp.||LKQ||Mar. 15|
|Anthem, Inc.||ANTM||Mar. 15|
|Walgreens Boots Alliance, Inc.||WBA||Mar. 12|
|International Paper Co.||IP||Mar. 12|
|iShares Europe ETF||IEV||Mar. 11|
|CME Group, Inc.||CME||Mar. 11|
|3M Co.||MMM||Mar. 11|
|Southwest Airlines Co.||LUV||Mar. 10|
|Under Armour, Inc.||UA||Mar. 9|
|Big Lots, Inc.||BIG||Mar. 9|
|Alaska Air Group, Inc.||ALK||Mar. 9|
|State Street Corp.||STT||Mar. 8|
|American Eagle Outfitters, Inc.||AEO||Mar. 8|
|Hess Corp.||HES||Mar. 3|
|Beazer Homes USA, Inc.||BZH||Mar. 3|
|Mastercard, Inc.||MA||Mar. 2|
|Boeing Co.||BA||Mar. 2|
|Starbucks Corp.||SBUX||Mar. 1|
|Eaton Corp.||ETN||Feb. 25|
|Oracle Corp.||ORCL||Feb. 24|
|United Airlines Holdings, Inc.||UAL||Feb. 24|
|Nucor Corp.||NUE||Feb. 23|
|Signet Jewelers Limited||SIG||Feb. 23|
|Old Dominion Freight Line||ODFL||Feb. 22|
|Seagate Technology||STX||Feb. 19|
|Chevron Corp.||CVX||Feb. 18|
|Lyft, Inc.||LYFT||Feb. 16|
|Intel Corp.||INTC||Feb. 12|
|U.S. Global Jets ETF||JETS||Feb. 9|
|Motorola Solutions, Inc.||MSI||Feb. 9|
|Diamondback Energy, Inc.||FANG||Feb. 4|
|CarMax, Inc.||KMX||Feb. 3|
|Toll Brothers, Inc.||TOL||Feb. 2|
|Avis Budget Group, Inc.||CAR||Feb. 1|
|Capital One Financial Corp.||COF||Jan. 29|
|Cummins, Inc.||CMI||Jan. 25|
|Magna International, Inc.||MGA||Jan. 22|
|M.D.C. Holdings, Inc.||MDC||Jan. 22|
|Zebra Technologies Corp.||ZBRA||Jan. 14|
|Nexstar Media Group, Inc.||NXST||Jan. 11|
|iShares Transportation Average ETF||IYT||Jan. 11|
|Energy Select Sector SPDR||XLE||Jan. 8|
|Skyworks Solutions, Inc.||SWKS||Jan. 7|
|Financial Select Sector SPDR||XLF||Jan. 7|
|Synaptics, Inc.||SYNA||Jan. 4|
|JPMorgan Chase & Co.||JPM||Dec. 22|
|Williams-Sonoma, Inc.||WSM||Dec. 15|
|SDPR S&P Regional Banking ETF||KRE||Dec. 14|
|Emerson Electric Co.||EMR||Dec. 8|
|Fortinet, Inc.||FTNT||Dec. 7|
|Kulicke and Soffa Industries, Inc.||KLIC||Dec. 7|
|Dillard’s, Inc.||DDS||Dec. 4|
|Sonos, Inc.||SONO||Dec. 1|
|American Airlines Group, Inc.||AAL||Nov. 30|
|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|
|Regions Financial Corp.||RF||Nov. 13|
|Norfolk Southern Corp.||NSC||Nov. 9|
|Communications Services Select Sector SPDR||XLC||Nov. 5|
|Alphabet, Inc.||GOOGL||Nov. 5|
|Micron Technology, Inc.||MU||Oct. 20|
|ON Semiconductor Corp.||ON||Oct. 16|
|Ford Motor Co.||F||Oct. 15|
|SPDR S&P Homebuilders ETF||XHB||Oct. 9|
|Shake Shack, Inc.||SHAK||Oct. 9|
|Martin Marietta Materials, Inc.||MLM||Sept. 30|
|Abercrombie & Fitch Co.||ANF||Sept. 29|
|Crocs, Inc.||CROX||Sept. 14|
|Five Below, Inc.||FIVE||Sept. 10|
|Deere & Co.||DE||Aug. 24|
|Johnson Controls International||JCI||Aug. 21|
|General Motors Co.||GM||Aug. 20|
|Builders FirstSource, Inc.||BLDR||Aug. 18|
|Industrial Select Sector SPDR||XLI||Aug. 6|
|SPDR S&P Metals & Mining ETF||XME||July 28|
|Materials Select Sector SPDR||XLB||July 20|
|Caterpillar, Inc.||CAT||July 20|
|SPDR S&P Retail ETF||XRT||June 3|
|iShares MSCI Japan ETF||EWJ||May 29|
|Tesla, Inc.||TSLA||Apr. 23|
|Apple, Inc.||AAPL||Mar. 27, 2020|
|Microsoft Corp.||MSFT||Feb. 22, 2019|
|* Click each symbol for current chart.|