Technically speaking, the Dow Jones Industrial Average is vying for a 13th straight record close, a stretch never registered in its history.
Meanwhile, the S&P 500 has rallied from first support — the 2,350 area — reaching a nominal all-time high. More plainly, the U.S. benchmarks’ February price action remains technical, and still supports a bullish view.
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 edged from one-week range, reaching a nominal all-time high.
First support matches the former range top, circa 2,367, and is followed by a firmer floor matching the 2,351 breakout point. The S&P bottomed last week at 2,352.9.
Meanwhile, the Dow Jones Industrial Average
has notched 12 straight record closes.
In its case, near-term support matches the range bottom, circa 20,730, and is followed by a deeper floor at the 20,640 breakout point.
Against this backdrop, the Nasdaq Composite has absorbed a modest late-month whipsaw.
Recall that it bottomed last week on the 5,800 mark, a level matching support, and defining the week’s low. The swift reversal from support is constructive, placing the index within striking distance of record territory.
Widening the view to six months adds perspective.
On this wider view, the Nasdaq has established a range-bound posture just under record territory. Its latest plateau is underpinned by support matching the 5,800 mark.
Conversely, the Nasdaq’s record close (5,865.95) and absolute record peak (5,867.89) remain firmly within view.
Meanwhile, the Dow Jones Industrial Average has notched 12 straight record closes, its longest such streak since 1987. The blue-chip benchmark has never registered 13 consecutive record closes.
In the process, the Dow has thus far topped 149 points, or 0.7%, under the 21,000 mark.
Separately, consider the 50-day moving average (in blue), currently 20,100, and rising about 20 points per session. Its steep slope exemplifies the Dow’s powerful 2017 bull trend.
Similarly, the S&P 500 has sustained, and slightly extended, the decisive February breakout.
Here again, the S&P has asserted a tight one-week range near record territory, signaling that selling pressure remains muted.
The bigger picture
As detailed at the top, the Dow Jones Industrial Average is vying for a 13th straight record close, a stretch never registered in its history.
The headline winning streak, already the Dow’s longest since 1987, exemplifies the U.S. benchmarks’ otherwise powerful, and still firmly-grounded, bull trend.
Moving to the small-caps, the iShares Russell 2000 ETF
is acting well technically.
Consider that the February bull flag is a continuation pattern, underpinned by the breakout point, positions the small-cap benchmark to build on the steep 2016 rally.
Separately, last week’s low of 137.30 closely matched the breakout point, circa 137.60. The successful retest of first support is technically constructive.
Meanwhile, the SPDR S&P MidCap 400’s backdrop remains stronger.
Recall that the 50-day moving average has defined the trend, currently 308.20, and is rising toward the breakout point, circa 311.
Looking elsewhere, the SPDR Trust S&P 500’s
backdrop remains incrementally stronger than that of the small- and mid-cap benchmarks. The SPY registered a fractional record close on Monday, rising from a tight one-week range.
All told, the U.S. benchmarks are concluding a strong February run against a still firmly-bullish longer-term backdrop.
The latest leg higher has been statistically unusual, as detailed last week, while the U.S. sub-sector price action remains rotational, and continues to support the bull case.
Tactically, the S&P 500’s breakout point — S&P 2,351 — closely matches last week’s low, and the prior week’s close. Conversely, the initial 2,365 target has been satisfied, and a more distant target projects to the 2,390 area, detailed previously.
Beyond technical levels, all trends technically point higher — the near-term, intermediate-term and longer-term trends — pending signs of a bearish pulse. The response to President Trump’s first address to Congress should add color.
Also see: Charting a 30-year technical breakout, S&P 500 confirms bull trend (again).
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.
Initially profiled Feb. 13, the iShares U.S. Home Construction ETF
is acting well technically.
As illustrated, the group has cleared well-defined resistance, reaching nine-year highs amid a volume spike.
The former range top matched major overhead, illustrated on the 10-year chart, and this week’s rally opens the path to potentially material follow-through.
Tactically, the breakout point, circa 30, pivots to first support. Delving deeper, the ascending 50-day moving average (in black) has recently defined the trend, and is rising toward support. A posture higher supports a bullish bias.
Toll Brothers, Inc.
is a large-cap luxury homebuilder and the ITB’s fifth-largest component.
Technically, the shares have recently reached 52-week highs, gapping sharply higher after the company’s strong first-quarter results.
The ensuing pullback has been flat, underpinned by the breakout point, positioning the shares to build on the initial spike. Toll Brothers is also well positioned on the weekly chart, registering its first close atop the 200-week moving average since 2015.
Public since July 2015, Lumentum Holdings, Inc.
is a mid-cap manufacturer of fiber-optic components.
Earlier this month, the shares knifed to record territory, rising amid a sustained volume increase after the company’s quarterly results.
The ensuing pullback places the shares at an attractive entry near the breakout point, and 15.6% under the February peak.
Wal-Mart Stores, Inc.
is a Dow 30 component coming to life. (Yield = 2.8%.)
As illustrated, the shares have recently gapped to the range top, rising after the company’s fourth-quarter results included strong online sales. The shares have subsequently hugged the range top, improving the chances of eventual follow-through.
First support matches the 200-day moving average, currently 70.60, and is followed by the bottom of the gap, circa 69.80. The recovery attempt is intact barring a violation.
Wal-Mart is lower early Tuesday, pressured amid a sales warning from rival Target Corp.
Marriott International, Inc.
is a well positioned large-cap hotel operator.
Earlier this month, the shares knifed from a bullish cup-and-handle pattern — defined by the January and February lows — rising to all-time highs.
The subsequent pullback has been flat, placing the shares at an attractive entry near the breakout point, and 4.1% under the February peak. Delving deeper, the 50-day moving average, currently 85.00, is rising toward support, and the uptrend 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.
|3M Co.||MMM||Feb. 27|
|Sanchez Energy Corp.||SN||Feb. 27|
|Canadian Solar, Inc.||CSIQ||Feb. 27|
|Bluebird bio, Inc.||BLUE||Feb. 27|
|Paycom Software, Inc.||PAYC||Feb. 24|
|iShares Silver Trust||SLV||Feb. 23|
|YY, Inc.||YY||Feb. 23|
|Facebook, Inc.||FB||Feb. 23|
|Latam Airlines Group||LFL||Feb. 23|
|TTM Technologies, Inc.||TTMI||Feb. 22|
|Acorda Therapeutics, Inc.||ACOR||Feb. 22|
|Cisco Systems, Inc.||CSCO||Feb. 21|
|Infinera Corp.||INFN||Feb. 21|
|Teva Pharmaceutical Industries||TEVA||Feb. 21|
|Capital One Financial Corp.||COF||Feb. 21|
|Sony Corp.||SNE||Feb. 17|
|Honda Motor Co.||HMC||Feb. 17|
|iShares MSCI Brazil ETF||EWZ||Feb. 16|
|Gerdau S.A.||GGB||Feb. 16|
|U.S. Steel Corp.||X||Feb. 16|
|Nuance Communications, Inc.||NUAN||Feb. 16|
|SPDR S&P Biotech ETF||XBI||Feb. 15|
|Fortinet, Inc.||FTNT||Feb. 15|
|MSCI, Inc.||MSCI||Feb. 15|
|Bank of America||BAC||Feb. 15|
|Constellium N.V.||CSTM||Feb. 15|
|Western Digital Corp.||WDC||Feb. 14|
|Eaton Corp.||ETN||Feb. 14|
|Microchip Technology, Inc.||MCHP||Feb. 13|
|iShares U.S. Home Construction ETF||ITB||Feb. 13|
|PulteGroup, Inc.||PHM||Feb. 13|
|Owens Corning||OC||Feb. 13|
|XPO Logistics, Inc.||XPO||Feb. 13|
|Costco Wholesale Corp.||COST||Feb. 10|
|Skyworks Solutions, Inc.||SWKS||Feb. 10|
|XL Group Ltd.||XL||Feb. 10|
|Reliance Steel & Aluminum Co.||RS||Feb. 10|
|Open Text Corp.||OTEX||Feb. 9|
|Wix.com Ltd.||WIX||Feb. 9|
|Cypress Semiconductor Corp.||CY||Feb. 8|
|CBOE Holdings, Inc.||CBOE||Feb. 8|
|Boeing Co.||BA||Feb. 7|
|Celestica, Inc.||CLS||Feb. 7|
|Rockwell Automation, Inc.||ROK||Feb. 6|
|II-VI, Inc.||IIVI||Feb. 6|
|LyondellBassell Industries||LYB||Feb. 6|
|Lennar Corp.||LEN||Feb. 6|
|McDonald’s Corp.||MCD||Feb. 3|
|Mercury Systems, Inc.||MRCY||Feb. 3|
|Corning, Inc.||GLW||Feb. 3|
|Xerox Corp.||XRX||Feb. 3|
|Celanese Corp.||CE||Feb. 2|
|Packaging Corporation of America||PKG||Feb. 1|
|Dr. Pepper Snapple Group, Inc.||DPS||Feb. 1|
|Kimberly-Clark Corp.||KMB||Feb. 1|
|Texas Instruments, Inc.||TXN||Jan. 31|
|Barrick Gold Corp.||ABX||Jan. 31|
|TE Connectively Ltd.||TEL||Jan. 31|
|Analog Devices, Inc.||ADI||Jan. 30|
|Exact Sciences Corp.||EXAS||Jan. 30|
|CME Group, Inc.||CME||Jan. 27|
|Aerie Pharmaceuticals, Inc.||AERI||Jan. 27|
|KB Home||KBH||Jan. 27|
|iShares China Large-Cap ETF||FXI||Jan. 27|
|iShares Europe ETF||IEV||Jan. 26|
|iShares India 50 ETF||INDY||Jan. 26|
|Applied Optoelectronics, Inc.||AAOI||Jan. 25|
|DuPont Fabros Technology, Inc.||DFT||Jan. 25|
|Home Depot, Inc.||HD||Jan. 24|
|Adobe Systems, Inc.||ADBE||Jan. 24|
|PTC, Inc.||PTC||Jan. 24|
|Fastenal Co.||FAST||Jan. 23|
|Global Payments, Inc.||GPN||Jan. 20|
|Shopify, Inc.||SHOP||Jan. 20|
|Cognex Corp.||CGNX||Jan. 19|
|Agilent Technologies, Inc.||A||Jan. 19|
|Glaukos Corp.||GKOS||Jan. 19|
|NetEase, Inc.||NTES||Jan. 18|
|MaxLinear, Inc.||MXL||Jan. 18|
|Advanced Energy Industries, Inc.||AEIS||Jan. 17|
|Autohome, Inc.||ATHM||Jan. 17|
|Anthem, Inc.||ANTM||Jan. 13|
|SPDR Gold Shares||GLD||Jan. 12|
|iShares MSCI Emerging Markets ETF||EEM||Jan. 11|
|Alaska Air Group, Inc.||ALK||Jan. 11|
|Digital Realty Trust, Inc.||DLR||Jan. 11|
|NuVasive, Inc.||NUVA||Jan. 11|
|Alphabet, Inc.||GOOGL||Jan. 9|
|Canadian Imperial Bank of Commerce||CM||Jan. 6|
|Alibaba Group Holding Limited||BABA||Jan. 5|
|VanEck Vectors Gold Miners ETF||GDX||Jan. 4|
|Kulicke and Soffa Industries, Inc.||KLIC||Jan. 4|
|ASML Holding N.V.||ASML||Jan. 3|
|AutoDesk, Inc.||ADSK||Dec. 20|
|Cavium, Inc.||CAVM||Dec. 20|
|ON Semiconductor Corp.||ON||Dec. 19|
|Clorox Co.||CLX||Dec. 19|
|Broadcom Limited||AVGO||Dec. 14|
|Ciena Corp.||CIEN||Dec. 14|
|Take-Two Interactive Software, Inc.||TTWO||Dec. 14|
|Emerson Electric Co.||EMR||Dec. 14|
|Microsoft Corp.||MSFT||Dec. 12|
|Apple, Inc.||AAPL||Dec. 9|
|Southwest Airlines Co.||LUV||Dec. 9|
|United Continental Holdings, Inc.||UAL||Dec. 7|
|Nexstar Broadcasting Group, Inc.||NXST||Dec. 7|
|Dow Chemical Co.||DOW||Dec. 6|
|Walt Disney Co.||DIS||Dec. 6|
|Consumer Discretionary SPDR||XLY||Dec. 5|
|Advanced Micro Devices, Inc.||AMD||Nov. 30|
|Western Digital Corp.||WDC||Nov. 29|
|NetApp, Inc.||NTAP||Nov. 28|
|Cummins, Inc.||CMI||Nov. 28|
|International Business Machines Corp.||IBM||Nov. 22|
|Incyte Corp.||INCY||Nov. 22|
|Applied Materials, Inc.||AMAT||Nov. 18|
|VMware, Inc.||VMW||Nov. 18|
|Financial Select Sector SPDR||XLF||Nov. 8|
|T-Mobile US, Inc.||TMUS||Nov. 8|
|Teradyne, Inc.||TER||Nov. 8|
|Lincoln Electric Holdings, Inc.||LECO||Nov. 7|
|American Express Co.||AXP||Nov. 1|
|U.S. Bancorp||USB||Oct. 31|
|Technology Select Sector SPDR||XLK||Oct. 25|
|East West Bancorp, Inc.||EWBC||Oct. 24|
|PNC Financial Services Group, Inc.||PNC||Oct. 21|
|Lam Research Corp.||LRCX||Oct. 20|
|Methanex Corp.||MEOH||Oct. 19|
|SunTrust Banks, Inc.||STI||Oct. 19|
|Copa Holdings||CPA||Oct. 18|
|Netflix, Inc.||NFLX||Oct. 4|
|Westlake Chemical Corp.||WLK||Sept. 30|
|Navistar International Corp.||NAV||Sept. 19|
|Prudential Financial, Inc.||PRU||Sept. 16|
|iShares Transportation Average||IYT||Sept. 8|
|Deere & Co.||DE||Sept. 7|
|SPDR S&P Regional Banking ETF||KRE||Aug. 29|
|Microsoft Corp.||MSFT||Aug. 5|
|Sprint Corp.||S||Aug. 5|
|Micron Technology, Inc.||MU||Aug. 2|
|Caterpillar, Inc.||CAT||July 27|
|CSX Corp.||CSX||July 20|
|PowerShares QQQ ETF||QQQ||July 19|
|Industrial Select Sector SPDR||XLI||July 15|
|Materials Select Sector SPDR||XLB||July 15|
|VanEck Vectors Semiconductor ETF||SMH||June 23|
|SPDR S&P Metals & Mining ETF||XME||Feb. 5|