Michael Ashbaugh

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Feb. 18, 2020, 12:40 p.m. EST

Charting a bull-trend pullback, S&P 500 digests break to record territory

Focus: Gold tags six-year highs amid safe-haven trade, GLD, AKAM, NDAQ, AAL, MNST

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By Michael Ashbaugh, MarketWatch

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Looking elsewhere, the SPDR Trust S&P 500 /zigman2/quotes/209901640/composite SPY +0.40%  has extended a break atop the trendline, rising to tag a record close across four of the prior five sessions.

To reiterate, the breakout point pivots to notable support, an area spanning from about 332.95 to 334.20.

Placing a finer point on the S&P 500, its backdrop remains bullish, and relatively straightforward.

To start, the S&P has established consecutive ranges — flag-like patterns — signaling still muted selling pressure near record highs. Bullish price action.

Tactically, the January peak (3,337) marks the first notable floor, and is followed by gap support (3,314). The ascending 20-day moving average, currently 3,316 (illustrated below), matches the latter.

Delving deeper, the 3,280 support matches the early-month gap, and remains a near-term bull-bear inflection point.

More broadly, the 50-day moving average, currently 3,260, is followed by the more important 3,215 support. The S&P has not closed under the 50-day since Oct. 9, a four-month span, the hallmark of a strong trend.

To reiterate, the S&P’s intermediate-term bias remains bullish barring a violation of the 3,215 area.

Conversely, a near- to intermediate-term S&P 500 target projects from the January low to about 3,445, an area detailed previously. The February peak (3,385) has registered within striking distance, about 1.8% under the target

Also see: Charting a bull-flag breakout, S&P 500 extends to record territory.

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 Gold Shares ETF /zigman2/quotes/200593176/composite GLD +0.46%  is acting well technically, rising at least partly (though not exclusively) amid a recent safe-haven trade.

As illustrated, the shares have asserted an orderly 2020 range, digesting the decisive December trendline breakout.

The range top (149.68) matches six-year highs, and is under siege to start this week. A near-term target projects to the 153 area on follow-through.

More broadly, the shares remain well positioned on the 10-year chart, rising from a bullish continuation pattern. Also recall that the GLD’s relative strength index (not illustrated) has recently registered its two best levels on record — the June 2019 and January 2020 prints — laying the groundwork for potentially material longer-term follow-through.

Tactically, a sustained posture atop the breakout point, circa 145.00, supports a firmly-bullish bias.

Initially profiled Jan. 24, Akamai Technologies, Inc. /zigman2/quotes/203072268/composite AKAM -0.09%  remains well positioned.

Technically, the shares have recently knifed to 19-year highs, rising after the company’s strong quarterly results.

The immediate pullback has been comparably flat, fueled by decreased volume, positioning the shares to build on initial spike.

Tactically, the breakout point (96.50) pivots to first support. Delving deeper, the 50-day moving average has marked an inflection point and is rising toward the former range bottom (93.00). A sustained posture atop this area supports a bullish bias.

Nasdaq, Inc. /zigman2/quotes/205547889/composite NDAQ +0.35%  is a well positioned large-cap name.

Late last month, the shares knifed to record territory, rising after the company’s fourth-quarter results. The upturn registered as a bullish two standard deviation breakout, encompassing six straight closes atop the 20-day Bollinger bands.

More immediately, the prevailing pullback has been orderly, placing the shares 3.5% under the February peak. Tactically, a near-term floor matches the post-breakout low (112.94) and the prevailing rally attempt is firmly intact barring a violation.

Monster Beverage Corp. /zigman2/quotes/205899417/composite MNST +0.95%  is a large-cap name positioned to rise.

The shares started February with a strong-volume breakout, rising to challenge the record high (70.22), established January 2018.

The subsequent tight range — or flag-like pattern — signals muted selling pressure near major resistance, laying the groundwork for potentially decisive follow-through. Tactically, trendline support closely matches the January peak (68.01) and a breakout attempt is in play barring a violation.

Finally, American Airlines Group, Inc. /zigman2/quotes/209207041/composite AAL +5.81%  is a large-cap carrier showing signs of life.

As illustrated, the shares have recently knifed atop trendline resistance closely tracking the 200-day moving average. The breakout raises the flag to a potential primary trend shift.

Tactically, the former range top (29.30) closely matches the 200-day, and is followed by the trendline, circa 28.80. The recovery attempt is intact 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.

Company Symbol Date Profiled
Visa, Inc. V Feb. 13
Ambarella, Inc. AMBA Feb. 13
SolarEdge Technologies, Inc. SEDG Feb. 13
Hovnanian Enterprises, Inc. HOV Feb. 13
Lowe’s Companies, Inc. LOW Feb. 12
Eaton Corp. ETN Feb. 12
Zimmer Biomet Holdings, Inc. ZBH Feb. 12
Elastic N.V. ESTC Feb. 12
Lumentum Holdings, Inc. LITE Feb. 11
Shake Shack, Inc. SHAK Feb. 11
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
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
Shopify,Inc. SHOP Nov. 27
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
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
RH RH Sept. 27
Nike, Inc. NKE Sept. 26
Toll Brothers, Inc. TOL Sept.25
Synaptics, Inc. SYNA 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
/zigman2/quotes/209901640/composite
US : U.S.: NYSE Arca
$ 305.55
+1.23 +0.40%
Volume: 56.65M
June 1, 2020 4:00p
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/zigman2/quotes/200593176/composite
US : U.S.: NYSE Arca
$ 163.66
+0.75 +0.46%
Volume: 8.15M
June 1, 2020 4:00p
loading...
/zigman2/quotes/203072268/composite
US : U.S.: Nasdaq
$ 105.71
-0.09 -0.09%
Volume: 1.70M
June 1, 2020 4:00p
P/E Ratio
35.16
Dividend Yield
N/A
Market Cap
$17.17 billion
Rev. per Employee
$361,015
loading...
/zigman2/quotes/205547889/composite
US : U.S.: Nasdaq
$ 118.88
+0.42 +0.35%
Volume: 929,588
June 1, 2020 4:00p
P/E Ratio
27.22
Dividend Yield
1.65%
Market Cap
$19.44 billion
Rev. per Employee
$1.07M
loading...
/zigman2/quotes/205899417/composite
US : U.S.: Nasdaq
$ 72.59
+0.68 +0.95%
Volume: 1.77M
June 1, 2020 4:00p
P/E Ratio
35.22
Dividend Yield
N/A
Market Cap
$37.87 billion
Rev. per Employee
$1.21M
loading...
/zigman2/quotes/209207041/composite
US : U.S.: Nasdaq
$ 11.11
+0.61 +5.81%
Volume: 50.58M
June 1, 2020 4:00p
P/E Ratio
N/A
Dividend Yield
0.00%
Market Cap
$4.44 billion
Rev. per Employee
$345,547
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Michael Ashbaugh writes technical analysis for MarketWatch and is editor of MarketWatch's "The Technical Indicator" newsletter.

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