Technically speaking, the big three U.S. benchmarks have stabilized in recent weeks as the fourth-quarter volatility spike fades.
Against this backdrop, the S&P 500 is traversing an increasingly familiar range — capped by major resistance (2,673) — and thus far underpinned by first support (2,631).
Before detailing the U.S. markets’ wider view, the S&P 500’s SPX, -0.11% hourly chart highlights the past two weeks.
As illustrated, the S&P has pulled in from major resistance. Last week’s high (2,672.4) closely matched the 2017 close (2,673).
Still, the downturn has thus far inflicted limited damage. The S&P has notched seven straight closes atop fist support (2,631) an area matching the November low.
Similarly, the Dow Jones Industrial Average has pulled in from major resistance.
In its case, familiar inflection points match the 2017 peak (24,876) and the 2017 close (24,719).
Last week’s high (24,860) and the weekly close (24,737) roughly matched resistance.
But here again, the Dow has thus far maintained its first notable support (24,286), notching seven straight closes higher.
Meanwhile, the Nasdaq Composite has pulled in from the January peak.
Tactically, the 7,080 area marks an inflection point, and is followed by a firmer floor matching the 2017 peak (7,004).
Widening the view to six months adds perspective.
On this wider view, the Nasdaq’s late-January price action remains constructive.
To reiterate, notable support matches the 2017 peak (7,004) and is followed by the 50-day moving average, currently 6,942. The Nasdaq’s intermediate-term bias remains bullish barring a violation.
Looking elsewhere, the Dow Jones Industrial Average is also acting well technically.
Still, the 2017 peak (24,876) and 2017 close (24,719) remain a sticking point, also detailed on the hourly chart.
Conversely, the November closing low (24,286) marks notable support and is followed by the 50-day moving average, currently 24,184.
Meanwhile, the S&P 500 is also digesting a respectable January rally.
To reiterate, the 2017 close (2,673) defines the range top, an area matching last week’s high (2,672.4).
Conversely, major support (2,631) is followed by the 50-day moving average, currently 2,611.
The bigger picture
As detailed above, the major U.S. benchmarks are acting well technically.
Each index has sustained a break atop the 50-day moving average, notching at least seven consecutive closes higher. Against this backdrop, the S&P 500 and Dow industrials have established a near-term range effectively capped by the 2017 close.
Moving to the small-caps, the iShares Russell 2000 ETF has sustained a rally atop the 50-day moving average, currently 142.90.
Moreover, the small-cap benchmark has edged atop its breakdown point — the familiar 145.60-to-146.00 area. Constructive price action.
Similarly, the SPDR S&P MidCap 400 has asserted a posture atop the 50-day moving average and the breakdown point.
Combined, the small- and mid-caps — as well as the big three U.S. benchmarks — have sustained late-month rallies atop the 50-day moving average. Tactically, the 50-day is a widely-tracked intermediate-term trending indicator.
Looking elsewhere, the SPDR Trust S&P 500 SPY, -0.09% is digesting the January rally to major resistance.
Tactically, the breakdown point spans from 263.07 to 263.25 — detailed repeatedly — and is followed by the deeper 50-day moving average, currently 261.00.
Placing a finer point on the S&P 500, its intermediate-term bias remains bullish.
Tactically, the 2017 close (2,673) marks a familiar sticking point, a level matching last week’s high (2,672) and the prior week’s close (2,670).
As always, it’s the response to resistance that’s worth tracking. To this point, selling pressure has been relatively muted.
Conversely, familiar support broadly spans from 2,611 to 2,631, levels matching the 50-day moving average and the former breakdown point. The S&P has registered seven straight closes atop both levels, preserving the January rally attempt.
Delving deeper, the 2,581 support rests precisely 10% above the 2018 low.
More broadly, and as detailed repeatedly, the S&P 500’s longer-term bias remains bearish pending a close atop major resistance (2,742) closely matching the flatlining 200-day moving average, currently 2,741.
See also: S&P 500 reaches firmer technical ground, pulls in from major resistance.
See also: Charting a bull flag: S&P 500, Nasdaq maintain major 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 SPDR Shares Gold ETF GLD, +0.46% is off to a strong 2019 start.
Technically, the shares have reached seven-month highs, rising from a flag-like pattern pinned to the steep December rally.
The breakout dovetails with a golden cross — or bullish 50-day/200-day moving average crossover — signaling that the intermediate-term trend has overtaken the primary trend.
Tactically, the breakout point pivots to support (122.40), and is followed by the former range bottom (120.70), defined by the January low.
(The prevailing breakout also resolves a mini island reversal defined by the gaps around the recent tight four-session range. The island reversal is generally a high-reliability pattern, though the reliability strengthens with its duration, and the gaps’ size, which in this case are both small.)
Looking elsewhere, the iShares MSCI Emerging Markets ETF EEM, +0.08% — profiled last week — continues to act well technically.
As illustrated, the shares have recently signaled a trend shift, clearing trendline resistance closely tracking the 100-day moving average.
Underlying the upturn, the relative strength index (not illustrated) has registered 52-week highs, improving the chances of follow-through. Tactically, the trendline pivots to support, circa 40.50, and the rally attempt is intact barring a violation.
Moving to specific names, Texas Instruments, Inc. TXN, -0.56% is a well positioned large-cap semiconductor name. (Yield = 2.9%.)
As illustrated, the shares have knifed to three-month highs, rising after the company’s fourth-quarter results. The breakout resolves a double bottom defined by the October and December lows.
Tactically, the breakout point closely matches the 100 mark, and pivots to support. The rally attempt is intact barring a violation.
Keysight Technologies, Inc. KEYS, -0.03% is a large-cap developer of design and test solutions, including solutions for 5G wireless technology deployment.
Technically, the shares have rallied to record territory, clearing the August peak.
Though near-term extended, the shares are traversing uncharted territory, and positioned for potentially material longer-term follow-through. A pullback toward the breakout point, circa 69.50, would offer an attractive entry.
Finally, Check Point Software Technologies CHKP, -0.49% is a large-cap Israel-based name coming to life. The company is scheduled to report its quarterly results on Wednesday, Jan. 30.
Technically, the shares have cleared trendline resistance, as well as the 50- and 200-day moving average, amid increased volume.
The 50-day moving average closely tracks the trendline, and the 200-day formerly defined support. (See the October and November lows.) Tactically, the rally attempt is intact barring a violation of the cross section, circa 107.50.
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 |
| Exact Sciences Corp. | EXAS | Jan. 28 |
| Schlumberger Limited | SLB | Jan. 28 |
| Aptiv plc | APTV | Jan. 28 |
| Teradyne, Inc. | TER | Jan. 28 |
| VanEck Vectors Semiconductor ETF | SMH | Jan. 25 |
| Applied Materials, Inc. | AMAT | Jan. 25 |
| Micron Technology, Inc. | MU | Jan. 25 |
| Roku, Inc. | ROKU | Jan. 25 |
| iShares MSCI Emerging Markets ETF | EEM | Jan. 24 |
| SBA Communications Corp. | SBAC | Jan. 24 |
| Eastman Chemical Co. | EMN | Jan. 24 |
| LGI Homes, Inc. | LGIH | Jan. 24 |
| Tableau Software, Inc. | DATA | Jan. 24 |
| Paycom Software, Inc. | PAYC | Jan. 23 |
| Delphi Technologies | DLPH | Jan. 23 |
| Bed Bath & Beyond, Inc. | BBBY | Jan. 23 |
| Eagle Materials, Inc. | EXP | Jan. 23 |
| Advanced Micro Devices, Inc. | AMD | Jan. 22 |
| Lennar Corp. | LEN | Jan. 22 |
| Materials Select Sector SPDR | XLB | Jan. 18 |
| Nike, Inc. | NKE | Jan. 18 |
| VeriSign, Inc. | VRSN | Jan. 18 |
| Dollar Tree, Inc. | DLTR | Jan. 18 |
| Apple, Inc. | AAPL | Jan. 18 |
| Amazon.com | AMZN | Jan. 17 |
| NetEase, Inc. | NTES | Jan. 17 |
| Nevro Corp. | NVRO | Jan. 17 |
| Westlake Chemical Corp. | WLK | Jan. 17 |
| Coupa Software, Inc. | COUP | Jan. 16 |
| Veeva Systems, Inc. | VEEV | Jan. 16 |
| Teledoc Health, Inc. | TDOC | Jan. 16 |
| Incyte Corp | INCY | Jan. 16 |
| Deere & Co. | DE | Jan. 11 |
| CyberArk Software | CYBR | Jan. 11 |
| Square, Inc. | SQ | Jan. 10 |
| Fabrinet | FN | Jan. 10 |
| Facebook, Inc. | FB | Jan. 9 |
| Okta, Inc. | OKTA | Jan. 9 |
| Virtu Financial, Inc. | VIRT | Jan. 9 |
| Tandem Diabetes Care, Inc. | TNDM | Jan. 9 |
| RingCentral, Inc | RNG | Jan. 8 |
| Alteryx, Inc. | AYX | Jan. 8 |
| Pioneer Natural Resources Co. | PXD | Jan. 8 |
| Netflix, Inc. | NFLX | Jan. 7 |
| iShares Brazil ETF | EWZ | Jan. 7 |
| Ciena Corp. | CIEN | Jan. 7 |
| Crox, Inc. | CROX | Jan. 7 |
| IAC/InterActivecorp | IAC | Jan. 7 |
| Five9, Inc. | FIVN | Dec. 13 |
| Ambarella, Inc. | AMBA | Dec. 11 |
| Tech Data Corp. | TECD | Dec. 11 |
| SPDR Gold Shares ETF | GLD | Dec. 10 |
| VanEck Vectors Gold Miners ETF | GDX | Dec. 10 |
| Workday, Inc. | WDAY | Dec. 10 |
| Atlassian Corp. | TEAM | Dec. 10 |
| Berry Global Group, Inc. | BERY | Nov. 26 |
| Ventas, Inc. | VTR | Nov. 26 |
| Ubiquiti Networks, Inc. | UBNT | Nov. 13 |
| TripAdvisor, Inc. | TRIP | Nov. 13 |
| Welltower, Inc. | WELL | Nov. 12 |
| Xilinx, Inc. | XLNX | Nov. 12 |
| Fabrinet | FN | Nov. 12 |
| Acacia Communications, Inc. | ACIA | Nov. 7 |
| Starbucks Corp. | SBUX | Nov. 5 |
| American Tower Corp. | AMT | Nov. 5 |
| Coca-Cola Co. | KO | Oct. 31 |
| Utilities Select Sector SPDR | XLU | Oct. 25 |
| McDonald’s Corp. | MCD | Oct. 24 |
| Church & Dwight Co. | CHD | Oct. 22 |
| Spirit Airlines, Inc. | SAVE | Oct. 19 |
| Yum! Brands, Inc. | YUM | Oct. 18 |
| Eli Lilly & Co. | LLY | Oct. 17 |
| CME Group, Inc. | CME | Oct. 8 |
| Verizon Communications, Inc. | VZ | Sept. 13 |
| Merck & Co., Inc. | MRK | June 21 |
| Twilio, Inc. | TWLO | May 21 |
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