Editor’s Note: This is a free edition of The Technical Indicator, a daily MarketWatch subscriber newsletter. To get this column each market day, click here.
Technically speaking, the major U.S. benchmarks continue to make progress even amid persistently volatile market price action.
Consider that the Nasdaq Composite has sustained its mid--March break to uncharted territory, while the S&P 500 continues to chip away at one-month highs.
Before detailing the U.S. markets’ wider view, the S&P 500’s SPX, -0.05% hourly chart highlights the past two weeks.
As illustrated,the S&P has gapped atop the 50-day moving average, currently 2,746, rising to challenge one-month highs. The immediate selling pressure near the range top has been muted.
To reiterate, additional overhead, circa 2,807, is followed by the bottom of the January gap (2,839).
Meanwhile, the Dow industrials’ backdrop remains slightly softer.
Still, the index has reclaimed its breakdown point, rising to challenge the 50-day moving average, currently 25,312.
On further strength, near-term resistance (25,520) is followed by the late-February peak (25,800).
Against this backdrop, the Nasdaq Composite has taken flight.
Specifically, the index has knifed to all-time highs, resolving a bullish “V” reversal from trendline support, illustrated below.
Widening the view to six months adds perspective.
On this wider view, the Nasdaq has reached uncharted territory, placing distance atop the January peak. The breakout originates from trendline support closely tracking the 50-day moving average.
Tactically, first support matches the breakout point, circa 7,505, and is followed by gap support, spanning from about 7,440 to 7,470, illustrated on the hourly chart.
Looking elsewhere, the Dow Jones Industrial Average remains far from record territory.
Instead, the index is challenging trendline resistance matching the 50-day moving average, currently 25,312. A close higher would resolve the massive seven-week symmetrical triangle, strengthening the bull case.
To reiterate, additional overhead broadly spans from 25,709 to 25,800, levels matching the late-February closing and absolute peaks.
Meanwhile, the S&P 500’s backdrop splits the difference between that of the other benchmarks.
Specifically, the S&P has cleared its downtrend — unlike the Dow industrials — though it remains some distance from record territory.
The bigger picture
As partly detailed above, the bigger-picture market technicals continue to strengthen.
On a headline basis, the Nasdaq Composite has extended its break to uncharted territory, while the S&P 500 has rallied to challenge one-month highs.
Moving to the small-caps, the iShares Russell 2000 ETF continues to make progress, placing distance atop well-defined resistance.
Its record close (159.96) and absolute record peak (160.63) remain within striking distance.
Similarly, the S&P MidCap 400 has cleared major resistance closely matching the 50-day moving average.
More broadly, recall that the small- and mid-cap benchmarks maintained the 200-day moving average at the February low. The successful retests, and subsequent follow-through higher, have preserved each benchmark’s primary uptrend.
Meanwhile, the SPDR Trust S&P 500 has reclaimed trendline resistance, a level closely tracking the 50-day moving average, currently 274.20.
Additional overhead (278.92) matches the late-February peak, and the SPY has registered consecutive closes fractionally lower. The retest remains underway.
Summing up the backdrop
Collectively, the U.S. benchmarks’ early-March rally, though still uneven, continues to make technical progress.
For instance, the Nasdaq Composite has taken flight, while the small- and mid-cap benchmarks have cleared major resistance.
Against this backdrop, the S&P 500 has gapped atop its 50-day moving average, rising to challenge one-month highs.
Tactically, S&P 2,780 marks an immediate inflection point, defining the former/prevailing range top.
Conversely, the 50-day moving average, currently 2,746, reverts to a downside inflection point, an area tracking the previously powerful bull trend. (See the SPY’s backdrop.)
Delving deeper, familiar support matches the former breakout point, broadly spanning from 2,673 to 2,695. Last week’s low (2,675) registered just above support, and the S&P 500’s recovery attempt is intact barring a violation.
See also: Charting a jagged recovery attempt, S&P 500 maintains last-ditch support.
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 10-year Treasury note yield TNX, -0.56% has finally flatlined, digesting the steep 2018 technical breakout.
As illustrated, the yield has asserted a higher plateau, and is traversing the new range, underpinned by first support, circa 2.79. Delving deeper, a firmer floor matches the yield’s breakout point (2.62).
Conversely, near-term resistance matches the prevailing range top (2.94) an area closely followed by the yield’s next target (3.04) a level matching the 2013 and 2014 peaks.
More broadly, consider that the yield and the S&P 500 have staged tandem March upturns. This is price action consistent with the view that the U.S. stock benchmarks have “priced for” the prevailing inflationary/reflationary environment.
Moving to specific names, Apple, Inc. AAPL, +0.23% is approaching a headline-grabbing market milestone.
Consider that its current market cap — approximately $928 billion — places it about 7.8% away from becoming the first company to reach the $1 trillion valuation mark.
Technically, the shares have edged to record highs, resolving a bullish “V” reversal from the February low. The breakout point (180.10) pivots to support and is followed by the former range top (175.25).
Delving slightly deeper, the 50-day moving average has marked an inflection point going back as far as June. Apple’s intermediate-term bias remains bullish barring a violation.
Initially profiled Oct. 25, Cisco Systems, Inc. CSCO, +0.15% has returned 31.7% and remains well positioned.
As illustrated, the shares have recently gapped to 17-year highs, rising after the company’s second-quarter results.
The subsequent flag-like pattern has been underpinned by the breakout point, positioning the shares to build on the initial spike. Monday’s fractional new closing high opens the path to a near-term target, circa 47.00.
Tactically, near-term support (45.40) is followed by the range bottom (42.75).
The Medicines Co. MDCO, -2.37% is a mid-cap biotech name coming to life.
The shares initially spiked seven weeks ago, knifing atop trendline resistance after the company’s analyst day presentation regarding its cholesterol treatment.
The ensuing consolidation phase has been orderly, amid a volatile market, and punctuated by this week’s rally atop the 200-day moving average, signaling a primary trend shift. Tactically, the breakout point closely matches the 200-day, currently 33.70, and the rally attempt is intact barring a violation.
Jounce Therapeutics, Inc. JNCE, +3.48% is a well positioned small-cap name.
As illustrated, the shares staged a massive nearly straightline January spike, rising amid takeover speculation.
More immediately, the shares have knifed atop trendline resistance, rising after the company’s quarterly results, combined with an announcement that it remains on track to report preliminary efficacy data for its developmental cancer treatment during the second quarter of 2018.
This week’s incremental closing high positions the shares for follow-through. A breakout attempt is in play barring a violation of near-term support, circa 26.10.
Editor’s Note: This is a free edition of The Technical Indicator, a daily MarketWatch subscriber newsletter. To get this column each market day, click here.
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 | Date Profiled |
| Applied Materials, Inc. | AMAT | Mar. 12 |
| NeoPhotonics Corp. | NPTN | Mar. 12 |
| TE Connectivity Ltd. | TEL | Mar. 12 |
| Vertex Pharmaceuticals, Inc. | VRTX | Mar. 12 |
| Electronic Arts, Inc. | EA | Mar. 9 |
| Baozun, Inc. | BZUN | Mar. 9 |
| PTC Therapeutics, Inc. | PTCT | Mar. 9 |
| Marathon Petroleum Corp. | MPC | Mar. 9 |
| Intel Corp. | INTC | Mar. 8 |
| AxoGen, Inc. | AXGN | Mar. 8 |
| Nektar Therapeutics | NKTR | Mar. 8 |
| Hewlett Packard Enterprise Co. | HPE | Mar. 7 |
| Cardtronics plc | CATM | Mar. 7 |
| Zebra Technologies Corp. | ZBRA | Mar. 7 |
| Westlake Chemical Corp. | WLK | Mar. 7 |
| Tableau Software, Inc. | DATA | Mar. 6 |
| TJX Companies, Inc. | TJX | Mar. 6 |
| Tivo, Inc. | TIVO | Mar. 6 |
| Chart Industries, Inc. | GTLS | Mar. 6 |
| Micron Technology, Inc. | MU | Mar. 5 |
| Macy’s, Inc. | M | Mar. 5 |
| Five9, Inc. | FIVN | Mar. 5 |
| Northern Trust Corp. | NTRS | Feb. 28 |
| Cypress Semiconductor Corp. | CY | Feb. 28 |
| LivePerson, Inc. | LPSN | Feb. 28 |
| Fabrinet | FN | Feb. 28 |
| Apple, Inc. | AAPL | Feb. 26 |
| VeriSign, Inc. | VRSN | Feb. 26 |
| Sina Corp. | SINA | Feb. 26 |
| Momo, Inc. | MOMO | Feb. 26 |
| Anadarko Petroleum Corp. | APC | Feb. 26 |
| Shopify, Inc. | SHOP | Feb. 23 |
| Agios Pharmaceuticals, Inc. | AGIO | Feb. 23 |
| Fossil Group, Inc. | FOSL | Feb. 23 |
| Shutterfly, Inc. | SFLY | Feb. 22 |
| CenturyLink, Inc. | CTL | Feb. 22 |
| Atlassian Corp. | TEAM | Feb. 22 |
| Fate Therapeutics, Inc. | FATE | Feb. 22 |
| Qorvo, Inc. | QRVO | Feb. 21 |
| ServiceNow, Inc. | NOW | Feb. 21 |
| Fibria Cellulose S.A. | FBR | Feb. 21 |
| Global Payments, Inc. | GPN | Feb. 20 |
| Vipshop Holdings Limited | VIPS | Feb. 20 |
| Financial Select Sector SPDR | XLF | Feb. 16 |
| PowerShares QQQ | QQQ | Feb. 16 |
| Ebay, Inc. | EBAY | Feb. 16 |
| Palo Alto Networks, Inc. | PANW | Feb. 16 |
| Adobe Systems, Inc. | ADBE | Feb. 16 |
| Twitter, Inc. | TWTR | Feb. 15 |
| Autoliv, Inc. | ALV | Feb. 15 |
| Varian Medical Systems, Inc. | VAR | Feb. 15 |
| SPDR S&P Retail ETF | XRT | Feb. 12 |
| Salesforce.com, Inc. | CRM | Feb. 12 |
| ASML Holding N.V. | ASML | Feb. 12 |
| Cinemark Holdings, Inc. | CNK | Feb. 12 |
| Red Hat, Inc. | RHT | Feb. 1 |
| iShares Latin American 40 ETF | ILF | Jan. 30 |
| Editas Medicine, Inc. | EDIT | Jan. 29 |
| Array BioPharma, Inc. | ARRY | Jan. 26 |
| Nike, Inc. | NKE | Jan. 22 |
| Fortinet, Inc. | FTNT | Jan 19 |
| SS&C Technologies Holdings,Inc. | SSNC | Jan. 18 |
| Insulet Corp. | PODD | Jan. 17 |
| Maxim Integrated Products, Inc. | MXIM | Jan. 16 |
| Arrowhead Pharmaceuticals Corp. | ARWR | Jan. 11 |
| Vericel Corp. | VCEL | Jan. 10 |
| Sarepta Therapeutics, Inc. | SRPT | Jan. 3 |
| SPDR Gold Trust | GLD | Jan. 2 |
| Vale S.A. | VALE | Dec. 21 |
| Zions Bancorp | ZION | Dec. 20 |
| BB&T Corp. | BBT | Dec. 19 |
| Prosperity Bancshares, Inc. | PB | Dec. 18 |
| Target Corp. | TGT | Dec.15 |
| SPDR S&P Metals & Mining ETF | XME | Dec. 14 |
| Seagate Technology | STX | Dec. 13 |
| F5 Networks, Inc. | FFIV | Dec. 11 |
| Best Buy Co. | BBY | Dec. 11 |
| PNC Financial Services Group, Inc. | PNC | Dec. 11 |
| Bank of America Corp. | BAC | Dec. 8 |
| Regions Financial Corp. | RF | Dec. 7 |
| KeyCorp | KEY | Dec. 6 |
| Kohl’s Corp. | KSS | Dec. 6 |
| SPDR S&P Regional Banking ETF | KRE | Nov. 29 |
| Advance Auto Parts, Inc. | AAP | Nov. 27 |
| Abercrombie & Fitch Co. | ANF | Nov. 20 |
| MSCI, Inc. | MSCI | Nov. 20 |
| Consumer Discretionary SPDR | XLY | Nov. 14 |
| Motorola Solutions, Inc. | MSI | Nov. 14 |
| Skechers U.S.A., Inc. | SKX | Nov. 13 |
| Splunk, Inc. | SPLK | Nov. 9 |
| Akamai Technologies, Inc. | AKAM | Oct. 30 |
| Cisco Systems, Inc. | CSCO | Oct. 25 |
| Lululemon Athletica, Inc. | LULU | Oct. 24 |
| Steel Dynamics, Inc. | STLD | Oct. 20 |
| HubSpot, Inc. | HUBS | Oct. 4 |
| XPO Logistics, Inc. | XPO | Oct. 2 |
| Neurocrine Biosciences, Inc. | NBIX | Oct. 2 |
| Nvidia Corp. | NVDA | Sept. 27 |
| Silicon Laboratories, Inc. | SLAB | Sep. 15 |
| Southern Copper Corp. | SCCO | Aug. 17 |
| Abbott Laboratories | ABT | Aug. 3 |
| Bottomline Technologies, Inc. | EPAY | July 13 |
| Sangamo Therapeutics, Inc. | SGMO | June 5 |
| Weibo Corp. | WB | May 12 |
| GrubHub, Inc. | GRUB | May 4 |
| UnitedHealth Group, Inc. | UNH | Mar. 31 |
| Square, Inc. | SQ | Mar. 3 |
| Paycom Software, Inc. | PAYC | Feb. 24 |
| Facebook, Inc. | FB | Feb. 23 |
| SPDR S&P Biotech ETF | XBI | Feb. 15 |
| Boeing Co. | BA | Feb. 7 |
| Amazon.com | AMZN | Jan. 13 |
| iShares MSCI Emerging Markets ETF | EEM | Jan. 11 |
| Alibaba Group Holding Limited | BABA | Jan. 5 |
| Technology Select Sector SPDR | XLK | Oct. 25 |
| Netflix, Inc. | NFLX | Oct. 4 |
| Microsoft Corp. | MSFT | Aug. 5 |
| VanEck Vectors Semiconductor ETF | SMH | June 23 |
Bagikan Berita Ini
0 Response to "Charting the market recovery Nasdaq takes flight as Dow industrials diverge"
Post a Comment