By Michael Ashbaugh, MarketWatch
Looking elsewhere, the SPDR Trust S&P 500 has reclaimed trendline resistance, rising to tag its latest record close.
The prevailing upturn punctuates a successful test of the 50-day moving average, nearly to the decimal (Within three cents.)
Placing a finer point on the S&P 500, the index has rallied to its latest record high, punctuating a sharp early-February rally.
Tactically, inflection points match the 20-day moving average, currently 3,303 (illustrated below), and the S&P’s former range bottom (3,280).
The top of last week’s gap (3,280) matched support. A sustained posture atop this area signals a bullish near-term bias.
Delving deeper, the 50-day moving average, currently 3,239, is followed by the familiar 3,215 support, a bull-bear inflection point detailed repeatedly.
The late-January low (3,215) matched major support, and has been punctuated by a sharp reversal to record territory. The S&P’s intermediate-term bias remains bullish barring a violation of the 3,215 area.
On further strength, a near- to intermediate-term S&P 500 target projects from the January low to about 3,445, an area detailed last week.
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 Industrial Select Sector SPDR has weathered the recent market downdraft. (Yield = 1.9%.)
Against this backdrop, the sharp February rally places the group’s record close (84.41) under siege. A near-term target projects to the 88 area on follow-through.
Conversely, the 50-day moving average is rising toward the breakout point (82.50) an area roughly matching last week’s gap (82.80). A breakout attempt is in play barring a violation.
More broadly, the group is also well positioned on the four-year chart, rising from a massive head-and-shoulders bottom.
Conversely, the Energy Select Sector SPDR /zigman2/quotes/206420077/composite XLE -0.49% has broken down technically, pressured at least partly amid concerns over a virus-fueled global economic slowdown.
As illustrated, the group has recently plunged to four-year lows, violating well-defined support amid a sustained volume increase.
The subsequent rally attempt has been capped by the breakdown point (55.90). The group’s technical bias remains firmly bearish pending a close atop this area. Separately, notice the downward sloping 50- and 200-day moving averages, consistent with bearish longer-term trends.
More broadly, the group remains vulnerable on four-year chart, traversing less-charted territory amid poorly-defined support.
Profiled Jan. 22, Dow 30 component International Business Machines Corp. /zigman2/quotes/203856914/composite IBM +0.21% has added 7.3% and remains well positioned.
The shares initially spiked three weeks ago, gapping to the range top after the company’s quarterly results. The subsequent late-January gap higher registered after the company appointed a new CEO.
More immediately, the prevailing pullback has been flat, fueled by decreased volume, placing the shares 2.6% under the February peak. A sustained posture atop the breakout point, circa 145, supports a bullish bias.
Separately, notice the pending golden cross — or bullish 50-day/200-day moving average crossover — an event that will likely signal Tuesday or Wednesday. (As this is written, the 50-day moving average, currently 138.27, rests just one penny under the 200-day moving average, currently 138.28.)
Lumentum Holdings, Inc. /zigman2/quotes/204419752/composite LITE -1.48% is a large-cap manufacturer of optical networking components and an Apple, Inc. supplier.
Earlier this month, the shares knifed to all-time highs, rising after the company’s quarterly results.
The subsequent flag-like pattern has formed amid decreased volume, signaling muted selling pressure at record territory. Tactically, the 50-day moving average has defined the recent trend, and is rising toward the breakout point (83.50). The prevailing uptrend is intact barring a violation.
Late last month, the shares gapped to record territory, rising amid a volume spike after the company’s quarterly results.
The subsequent tight range positions the shares to build on the steep January rally. Tactically, the prevailing range bottom (145.00) is followed by the top of the gap (140.65). A posture higher supports a bullish bias.
Finally, Shake Shack, Inc. /zigman2/quotes/209397077/composite SHAK +3.00% is a mid-cap name showing signs of life.
The shares initially spiked four weeks ago, clearing trendline resistance after the company reported strong same-store sales, fueled partly by a recent GrubHub partnership.
More immediately, the shares are challenging the 200-day moving average, currently 74.45, a level roughly matching the 100-day moving average. A breakout opens the path to a less-charted patch and potentially swift near-term follow-through.
Tactically, a near-term floor matches the former range top, circa 71.50, and a breakout attempt is in play barring a violation.
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.
|iShares Nasdaq Biotechnology ETF||IBB||Feb. 10|
|Lennar Corp.||LEN||Feb. 10|
|Perrigo Co.||PRGO||Feb. 10|
|Kodiak Sciences, Inc.||KOD||Feb. 10|
|Twitter, Inc.||TWTR||Feb. 7|
|Church & Dwight Co., Inc. is||CHD||Feb. 7|
|Tandem Diabetes Care, Inc.||TNDM||Feb. 7|
|Momenta Pharmaceuticals, Inc.||MNTA||Feb. 7|
|BioMarin Pharmaceutical, Inc.||BMRN||Feb. 6|
|Boeing, Inc.||BA||Feb. 6|
|Cognizant Technology Solutions Corp.||CTSH||Feb. 6|
|iShares Europe ETF||IEV||Feb. 5|
|Norfolk Southern Corp.||NSC||Feb. 5|
|Vertex Pharmaceuticals, Inc.||VRTX||Feb. 5|
|Five9, Inc.||FIVN||Feb. 5|
|L Brands, Inc.||LB||Feb. 5|
|Financial Select Sector SPDR||XLF||Feb. 4|
|STMicroelectronics, Inc.||STM||Feb. 4|
|PTC, Inc.||PTC||Feb. 4|
|Okta, Inc.||OKTA||Jan. 31|
|eHealth, Inc.||EHTH||Jan. 31|
|JetBlue Airways Corp.||JBLU||Jan. 31|
|PepsiCo, Inc.||PEP||Jan. 30|
|Abbott Laboratories||ABT||Jan. 30|
|United Therapeutics Corp.||UTHR||Jan. 30|
|Morgan Stanley||MS||Jan. 29|
|Halozyme Therapeutics, Inc.||HALO||Jan. 29|
|Akamai Technologies, Inc.||AKAM||Jan. 24|
|StoneCo Ltd.||STNE||Jan. 24|
|Spirit Airlines, Inc.||SAVE||Jan. 23|
|Himax Technologies, Inc.||HIMX||Jan. 23|
|International Business Machines||IBM||Jan. 22|
|Yeti Holdings, Inc.||YETI||Jan. 22|
|Home Depot, Inc.||HD||Jan. 21|
|PulteGroup, Inc.||PHM||Jan. 16|
|Square, Inc.||SQ||Jan. 16|
|SailPoint Technologies Holdings, Inc.||SAIL||Jan. 15|
|SPDR S&P Homebuilders ETF||XHB||Jan. 14|
|Netflix, Inc.||NFLX||Jan. 14|
|Newmont Corp.||NEM||Jan. 13|
|SBA Communications Corp.||SBAC||Jan. 13|
|CME Group, Inc.||CME||Jan. 10|
|Motorola Solutions, Inc.||MSI||Jan. 10|
|fMcDonald’s Corp.||MCD||Jan. 9|
|Big Lots, Inc.||BIG||Jan. 9|
|Micron Technology, Inc.||MU||Jan. 8|
|Zendesk, Inc.||ZEN||Jan. 8|
|Fortinet, Inc.||FTNT||Jan. 7|
|Atlassian Corp.||TEAM||Jan. 7|
|Twilio, Inc.||TWLO||Jan. 7|
|Coupa Software, Inc.||COUP||Jan. 6|
|Progressive Corp.||PGR||Jan. 6|
|SPDR Gold Shares ETF||GLD||Jan. 2|
|Amazon.com, Inc.||AMZN||Jan. 2|
|Union Pacific Corp.||UNP||Dec. 23|
|Activision Blizzard, Inc.||ATVI||Dec. 20|
|Air Products and Chemicals, Inc.||APD||Dec. 18|
|PTC Therapeutics, Inc.||PTCT||Dec. 18|
|Autodesk, Inc.||ADSK||Dec. 17|
|American Express Co.||AXP||Dec. 16|
|Paycom Software, Inc.||PAYC||Dec. 16|
|NXP Semiconductors N.V.||NXPI||Dec. 11|
|Bristol-Myers Squibb Co.||BMY||Dec. 10|
|Splunk, Inc.||SPLK||Dec. 9|
|Macom Technology Solutions Holding, Inc.||MTSI||Dec. 6|
|Yamana Gold. Inc.||AUY||Dec. 5|
|VanEck Vectors Gold Miners ETF||GDX||Dec. 3|
|Pan American Silver Corp.||PAAS||Dec. 3|
|Nuance Communications, Inc.||NUAN||Dec. 3|
|Stanley Black & Decker, Inc.||SWK||Nov. 25|
|Baidu, Inc.||BIDU||Nov. 22|
|Medtronic plc||MDT||Nov. 21|
|Wheaton Precious Metals Corp.||WPM||Nov. 20|
|Nevro Corp.||NVRO||Nov. 19|
|Agios Pharmaceuticals, Inc.||AGIO||Nov. 18|
|Allstate Corp.||ALL||Nov. 14|
|Adobe, Inc.||ADBE||Nov. 14|
|AstraZenaca, plc||AZN||Nov. 12|
|Health Care Select Sector SPDR||XLV||Nov. 11|
|Advanced Micro Devices, Inc.||AMD||Nov. 7|
|Alibaba Holdings Group, Ltd.||BABA||Nov. 5|
|Alphabet, Inc.||GOOGL||Nov. 4|
|Teledoc Health, Inc.||TDOC||Nov. 1|
|Salesforce.com, Inc.||CRM||Oct. 31|
|Citrix Systems, Inc.||CTXS||Oct. 31|
|Industrial Select Sector SPDR||XLI||Oct. 31|
|Invesco QQQ Trust||QQQ||Oct. 30|
|Centene Corp.||CNC||Oct. 30|
|Generac Holdings, Inc.||GNRC||Oct. 25|
|RingCentral, Inc.||RNG||Oct. 24|
|United Technologies Corp.||UTX||Oct. 23|
|Nvidia Corp.||NVDA||Oct. 22|
|Tesla, Inc.||TSLA||Oct. 21|
|Garmin, Ltd.||GRMN||Oct. 18|
|Skyworks Solutions, Inc.||SWKS||Oct. 15|
|Taiwan Semiconductor Manufacturing Co.||TSM||Sept. 27|
|Sony Corp.||SNE||Sept. 26|
|Nike, Inc.||NKE||Sept. 26|
|Toll Brothers, Inc.||TOL||Sept.25|
|Intel Corp.||INTC||Sept. 18|
|VanEck Vectors Semiconductor ETF||SMH||Sept. 11|
|Kansas City Southern||KSU||Sept. 10|
|Lam Research Corp.||LRCX||Sept. 3|
|iShares U.S. Home Construction ETF||ITB||Aug. 27|
|Apple, Inc.||AAPL||Aug. 21|
|XPO Logistics, Inc.||XPO||Aug. 20|
|Itron, Inc.||ITRI||Aug. 19|
|D.R. Horton, Inc.||DHI||July 31|
|Teradyne, Inc.||TER||July 30|
|Franco-Nevada Corp.||FNV||July 18|
|Inphi Corp.||IPHI||July 8|
|Lululemon Athletica, Inc.||LULU||June 19|
|Ross Stores, Inc.||ROST||June 14|
|Consumer Staples Select Sector SPDR||XLP||Mar. 28|
|iShares U.S. Real Estate ETF||IYR||Mar. 13|
|Costco Wholesale Corp.||COST||Mar. 6|
|Microsoft Corp.||MSFT||Feb. 22|
|Procter & Gamble Co.||PG||Feb. 8|
|Applied Materials, Inc.||AMAT||Jan. 25|
|Utilities Select Sector SPDR||XLU||Oct. 25|