Technically speaking, the U.S. stock benchmarksâ persistent bull trend remains firmly-grounded.
Consider that the S&P 500 and Nasdaq Composite have reached all-time highs this week â confirming their uptrends â amid still broadening sector participation.
Before detailing the U.S. marketsâ wider view, the S&P 500âs
Â hourly chart highlights the past two weeks.
As illustrated, the S&P has sustained a slight break to its latest record high.
From current levels, first support rests at 2,175, and is followed by a deeper floor matching the former range bottom of 2,159.
Meanwhile, the Dow industrialsâ backdrop remains bullish, but slightly weaker.
Though itâs rallied to the range top, the index remains capped by record territory, better illustrated on the daily chart.
Near-term support holds around 18,470, and is followed by a deeper floor at 18,355.
And like the S&P 500, the Nasdaq Composite
is pressing all-time highs.
Consider that last weekâs close marked a record closing high, and the immediate pullback has been flat. Bullish price action.
From current levels, gap support spans from 5,174 to 5,186.
Widening the view to six months adds perspective.
On this wider view, two overhead levels stand out:
- The Nasdaqâs all-time closing high, established Friday, of 5,221.12.
- The Nasdaqâs absolute record high, established July 20, 2015, of 5,231.94.
The Nasdaq has extended its uptrend early Tuesday, notching a nominal new high of 5,238.
More broadly, the massive, nearly straightline, rally from the June low is longer-term bullish. The Nasdaqâs first notable support holds around the 5,100 mark.
Looking elsewhere, the Dow Jones Industrial Average is the only major U.S. benchmark not to reach a record high this month â at least so far.
Recall that its all-time closing high rests at 18,595, and is closely followed by its absolute record peak of 18,622.
Still, the Dowâs three-week bullish flag is a continuation pattern, improving the chances of an eventual leg higher.
Meanwhile, the S&P 500 has extended its uptrend, reaching a nominal new high.
Itâs traversing uncharted territory, underpinned by near-term support at 2,175. The S&Pâs 20-day moving average, a widely-tracked near-term trending indicator, is rising to match support.
The bigger picture
Broadly speaking, the U.S. marketsâ bigger-picture technicals remain firmly bullish.
The S&P 500 and Nasdaq Composite have registered nominal all-time highs, while the Dow industrials remain firmly within striking distance of a corresponding record.
Moving to the small-caps, the iShares Russell 2000 ETFâs
pulling-teeth breakout attempt remains underway.
Recall that an intermediate- to longer-term target projects almost precisely to a retest of its all-time high.
Take the difference between the June high and low: 118.64 – 108.19 = 10.45. Then, project from the June peak: 118.64 + 10.45 = 129.09.
The IWMâs all-time high, established June 2015, rests at 129.10.
Similarly, the SPDR S&P MidCap 400 has reached a nominal all-time high without truly breaking out.
Still, its bullish flag is a continuation pattern â and recent rallies have been fueled by increased volume â improving the chances of a more decisive breakout.
Against this backdrop, the S&P 500 has knifed to all-time highs, and extended the breakout.
Though the S&P faces no true technical resistance, recall that an intermediate-term target can be assigned to the 2,234 area, projecting from the Brexit-induced June whipsaw.
(Take the pre-Brexit peak of 2,113 – 1,992 = 121 points. Then, project from the range: 2,113 + 121 = 2,234. Separately, consider that S&P 2,175 defines the mid-point between the 2,117 breakout point and the 2,234 target.)
Beyond the granular, the S&P 500, S&P MidCap 400 and Nasdaq Composite have confirmed their respective uptrends, concurrently reaching nominal all-time highs. Meanwhile, sector participation continues to broaden, most recently to include the financials, profiled Monday.
More plainly, the U.S. benchmarksâ prevailing uptrend remains firmly-grounded, and the bigger-picture market technicals support a bullish view.
Tuesdayâs Watch List
The charts below detail names that are technically well positioned. These are radar screen names â 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 July 13, the iShares China Large-Cap ETF
Â remains well positioned. (Yield = 3.0%.)
As illustrated, the shares have recently rallied to seven-month highs, clearing resistance matching the June peak.
Itâs subsequently established a bullish flag, underpinned by the breakout point. The August upturn punctuates a successful test of support, potentially opening the path to a projected near-term target around 36.70.
Also notice the recent golden cross â or 50-day/200-day moving average crossover â signaling that the intermediate-term uptrend has overtaken the longer-term trend.
Cirrus Logic, Inc.
Â is a mid-cap developer of digital signal processing chips, and an Apple iPhone supplier.
Late last month, the shares gapped to 20-year highs, rising amid reports that Apple has increased its Cirrus Logic content for the upcoming iPhone by about 40%.
It subsequently registered five inside days â sessions in which the daily range falls within the breakoutâs original range â positioning the shares to build on the July spike.
With this weekâs upturn, the July peak (50.00) offers an area to work against with a posture higher supporting a bullish bias.
Â is a large-cap security software vendor positioned to rise.
Late last week, the shares gapped to 52-week highs, rising after the companyâs strong first-quarter results and outlook.
Though still near-term extended, the strong-volume spike is longer-term bullish, and a deeper pullback toward the breakout point, circa 21.30, would offer an attractive entry.
Profiled May 19, F5 Networks, Inc.
has returned 19.9% and remains well positioned.
The shares initially spiked two months ago, rising amid reports that the company has hired an investment bank to evaluate takeover bids.
It subsequently absorbed the Brexit-fueled June whipsaw, rising to challenge 11-month highs. This weekâs upturn comes from a tight two-week range, positioning the shares for a potentially more decisive breakout.
Pacira Pharmaceuticals, Inc.
Â is a mid-cap name coming to life.
Technically, the shares have recently gapped atop the 50-day moving average, rising after the companyâs second-quarter results.
The ensuing pullback has been comparably flat, fueled by decreased volume, placing the shares at an attractive entry near the breakout point, and 6.7% under the August peak.
is a mid-cap developer of software and related services for engineering applications.
As illustrated, the shares have recently knifed to 52-week highs, rising despite the companyâs third-quarter earnings miss.
Itâs subsequently established a bullish flag â underpinned by the breakout point â positioning the shares to build on the July rally.
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.
|Financial Select Sector SPDR||XLF||Aug. 8|
|American Express Co.||AXP||Aug. 8|
|Bank of America||BAC||Aug. 8|
|Intra-Cellular Therapies, Inc.||ITCI||Aug. 8|
|International Business Machines Corp.||IBM||Aug. 8|
|Microsoft Corp.||MSFT||Aug. 5|
|Sprint Corp.||S||Aug. 5|
|Kansas City Southern||KSU||Aug. 5|
|Netgear, Inc.||NTGR||Aug. 5|
|Sony Corp.||SNE||Aug. 4|
|Spark Therapeutics, Inc.||ONCE||Aug. 4|
|CDK Global, Inc.||CDK||Aug. 4|
|Expeditors International||EXPD||Aug. 4|
|Intersil Corp.||ISIL||Aug. 4|
|InterDigital, Inc.||IDCC||Aug. 3|
|Microchip Technology, Inc.||MCHP||Aug. 3|
|Valero Energy Corp.||VLO||Aug. 3|
|Berry Plastics Group, Inc.||BERY||Aug. 3|
|Cheetah Mobile, Inc.||CMCM||Aug. 3|
|iShares MSCI South Korea ETF||EWY||Aug. 2|
|Micron Technology, Inc.||MU||Aug. 2|
|NetApp, Inc.||NTAP||Aug. 2|
|Baxter International, Inc.||BAX||Aug. 2|
|Allergan plc||AGN||Aug. 1|
|General Dynamics Corp.||GD||Aug. 1|
|Greenbrier Companies, Inc.||GBX||Aug. 1|
|Apple, Inc.||AAPL||July 29|
|Home Depot, Inc.||HD||July 29|
|Vertex Pharmaceuticals, Inc.||VRTX||July 29|
|Crane Co.||CR||July 29|
|Polaris Industries, Inc.||PII||July 28|
|Dycom Industries, Inc.||DY||July 28|
|Caterpillar, Inc.||CAT||July 27|
|Eaton Corp.||ETN||July 27|
|Nucor Corp.||NUE||July 27|
|Cummins, Inc.||CMI||July 27|
|Activision Blizzard, Inc.||ATVI||July 26|
|Oclaro, Inc.||OCLR||July 26|
|American Eagle Outfitters||AEO||July 26|
|SPDR S&P Retail ETF||XRT||July 26|
|Consumer Discretionary SPDR||XLY||July 25|
|Union Pacific Corp.||UNP||July 25|
|MSCI, Inc.||MSCI||July 25|
|Amgen, Inc.||AMGN||July 25|
|SPDR S&P Biotech ETF||XBI||July 22|
|Incyte Corp.||INCY||July 22|
|International Paper||IP||July 22|
|Yum Brands, Inc.||YUM||July 22|
|Facebook, Inc.||FB||July 21|
|CSX Corp.||CSX||July 20|
|Shopify, Inc.||SHOP||July 20|
|CST Brands, Inc.||CST||July 20|
|PowerShares QQQ ETF||QQQ||July 19|
|Gigamon, Inc.||GIMO||July 19|
|BioMarin Pharmaceutical, Inc.||BMRN||July 18|
|Teva Pharmaceutical||TEVA||July 18|
|Cypress Semiconductor||CY||July 18|
|Avis Budget Group, Inc.||CAR||July 15|
|Eli Lilly and Co.||LLY||July 15|
|Industrial Select Sector SPDR||XLI||July 15|
|Materials Select Sector SPDR||XLB||July 15|
|Cisco Systems, Inc.||CSCO||July 14|
|Kellog Co.||K||July 14|
|iShares China Large-Cap ETF||FXI||July 13|
|Alibaba Group Holding||BABA||July 13|
|U.S. Steel Corp.||X||July 13|
|Alliance Resource Partners||ARLP||July 13|
|Big Lots, Inc.||BIG||July 13|
|Lannett Co.||LCI||July 12|
|Yamana Gold, Inc.||AUY||July 12|
|Loweâs Companies, Inc.||LOW||July 11|
|Verizon Communications, Inc.||VZ||July 8|
|Weibo Corp.||WB||July 8|
|SodaStream International, Ltd.||SODA||July 8|
|Radius Health, Inc.||RDUS||July 8|
|Health Care Select Sector SPDR||XLV||July 7|
|Veeva Systems, Inc.||VEEV||July 7|
|Raytheon Co.||RTN||July 7|
|Advance Auto Parts, Inc.||AAP||July 7|
|Dr. Pepper Snapple Group, Inc.||DPS||July 6|
|Procter & Gamble Co.||PG||July 6|
|Healthcare Trust of America, Inc.||HTA||July 5|
|NuVasive, Inc.||NUVA||July 5|
|iShares Brazil ETF||EWZ||June 30|
|NetEase, Inc.||NTES||June 30|
|Advanced Micro Devices, Inc.||AMD||June 30|
|DexCom, Inc.||DXCM||June 29|
|ResMed, Inc.||RMD||June 29|
|General Mills, Inc.||GIS||June 29|
|VanEck Vectors Semiconductor ETF||SMH||June 23|
|Exact Sciences, Inc.||EXAS||June 23|
|H&R Block, Inc.||HRB||June 22|
|Nevro Corp.||NVRO||June 21|
|Dollar Tree, Inc.||DLTR||June 17|
|United Natural Foods, Inc.||UNFI||June 16|
|Five Below, Inc.||FIVE||June 16|
|Ambarella, Inc.||AMBA||June 15|
|Lululemon Athletica, Inc.||LULU||June 15|
|Yandex N.V.||YNDX||June 15|
|AT&T, Inc.||T||June 13|
|Franco-Nevada Corp.||FNV||June 13|
|Ingredion Inc.||INGR||June 10|
|2U, Inc.||TWOU||June 6|
|Archer-Daniels-Midland Co.||ADM||May 25|
|F5 Networks, Inc.||FFIV||May 19|
|Macquarie Infrastructure Co.||MIC||May 18|
|Yelp, Inc.||YELP||May 16|
|SkyWest, Inc.||SKYW||May 12|
|Dolby Laboratories, Inc.||DLB||May 10|
|Amazon.com, Inc.||AMZN||May 10|
|iShares U.S. Real Estate ETF||IYR||May 5|
|Zillow Group, Inc.||Z||Apr. 25|
|Taho Resources, Inc.||TAHO||Apr. 18|
|Newmont Mining Corp.||NEM||Apr. 15|
|Pepsico, Inc.||PEP||Apr. 7|
|Merck & Co.||MRK||Apr. 5|
|Silicon Motion Technology Corp.||SIMO||Apr. 5|
|U.S. Silica Holdings, Inc.||SLCA||Apr. 1|
|American Tower Corp.||AMT||Mar. 29|
|Ulta Salon, Cosmetics & Fragrance||ULTA||Mar. 22|
|Nvidia Corp.||NVDA||Mar. 21|
|Teleflex, Inc.||TFX||Mar. 3|
|Agnico Eagle Mines||AEM||Feb. 24|
|Johnson & Johnson||JNJ||Feb. 19|
|Pan American Silver Corp.||PAAS||Feb. 19|
|Silver Wheaton Corp.||SLW||Feb. 19|
|Market Vectors Junior Gold Miners ETF||GDXJ||Feb. 18|
|SPDR S&P Metals & Mining ETF||XME||Feb. 5|
|Market Vectors Gold Miners ETF||GDX||Feb. 5|
|SPDR Gold Trust||GLD||Feb. 4|
|Consumer Staples Select Sector SPDR||XLP||Feb. 1|
|iShares Silver Trust||SLV||Jan. 28|
|Utilities Select Sector SPDR||XLU||Jan. 25|
|Huntington Ingalls Industries, Inc.||HII||Jan. 13|
|Barrick Gold Corp.||ABX||Jan. 11|
|ITC Holdings Corp.||ITC||Dec. 21|
|Equity LifeStyle Properties, Inc.||ELS||Dec. 16|