By Michael Ashbaugh, MarketWatch
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Technically speaking, each big three U.S. benchmark has reached record territory, confirming its uptrend with a strong third-quarter start.
Against this backdrop, the S&P 500 is digesting its July breakout, a move opening the path to a longer-term target (3,150) precisely 5.0% above the 3,000 mark.
Before detailing the U.S. markets’ wider view, the S&P 500’s /zigman2/quotes/210599714/realtime SPX +0.05% hourly chart highlights the past two weeks.
As illustrated, the S&P 500 has extended its July break to record territory.
Tactically, the breakout points pivot to support, an area broadly spanning from 2,995 to 3,003.
Meanwhile, the Dow Jones Industrial Average /zigman2/quotes/210598065/realtime DJIA +0.11% has taken flight, placing distance atop the 27,000 mark.
Near-term inflection points match last week’s gap, at 27,135 and 27,088. Delving deeper, a firmer floor matches the breakout point (26,966).
Against this backdrop, the Nasdaq Composite /zigman2/quotes/210598365/realtime COMP +0.11% has also tagged another record high.
The prevailing upturn punctuates a successful test of the breakout point (8,172). Bullish price action.
More broadly, recall that last week’s low (8,061) closely matched gap support (8,059) an area also detailed below.
Widening the view to six months adds perspective.
On this wider view, the Nasdaq has extended its July breakout, reaching uncharted territory. Significant support spans from 8,172 to 8,176, an area also detailed on the hourly chart.
Delving deeper, the prevailing breakout originates from a tight range, underpinned by the top of the July gap (8,059). The upturn resolves a bullish V-shaped reversal from the June low.
Looking elsewhere, the Dow Jones Industrial Average has truly taken flight.
The nearly straightline spike punctuates a successful test of its breakout point, an area matching the April peak (26,696).
On a more granular note, the Dow has staged a bullish two standard deviation breakout, notching consecutive closes atop its 20-day Bollinger bands. Though near-term extended, this statistically unusual event likely lays the groundwork for incremental intermediate-term gains.
Meanwhile, the S&P 500 has also extended its July breakout.
The prevailing upturn punctuates a successful test of the June peak (2,964) an area also detailed on the hourly chart.
The bigger picture
Collectively, each major U.S. benchmark has reached record territory, building on an already strong third-quarter start.
Moreover, each benchmark’s prevailing upturn punctuates a successful test of well-defined support — see the S&P 2,964, Nasdaq 8,060 and Dow 26,700 areas.
Put differently, the benchmarks are rising amid distinctly technical July price action, consistent with a firmly-grounded uptrend.
Moving to the small-caps, the iShares Russell 2000 ETF continues to lag behind.
Still, the small-cap benchmark has asserted a tight July range, digesting the early-July rally atop the major moving averages.
Similarly, the SPDR S&P MidCap 400 has established a tight July range, refusing to stay far from next resistance (354.70).
Tactically, the prevailing range top (359.25) is closely followed by the MDY’s year-to-date closing peak (261.02).