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July 14, 2020, 12:35 p.m. EDT

Charting a bull-trend whipsaw, S&P 500 nails next resistance

Focus: Gold miners sustain technical breakout, GDX, APD, FSLR, ACAD, MXL

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By Michael Ashbaugh, MarketWatch

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Similarly, the SPDR S&P MidCap 400 ETF has maintained a posture atop the 50-day moving average, currently 317.85.

Delving deeper, a firmer floor holds in the 310 area, matching the June low (310.16) and May gap (309.86).

Looking elsewhere, the SPDR Trust S&P 500 remains comparably stronger.

As illustrated, the SPY has maintained a tight July range, notwithstanding this week’s early whipsaw.

Though Monday’s reversal was fueled by a volume uptick, the underlying internals registered as conspicuously tame. For instance, NYSE declining volume surpassed advancing volume by a pedestrian 2-to-1 margin.

In a textbook world, a downturn on the order of 7-to-1 negative breadth (or stronger) would raise a question mark.

Placing a finer point on the S&P 500, the index has tagged next resistance (3,235), and pulled in to the range.

Recall that the prevailing range is effectively defined by the June gap, spanning from 3,123 to 3,182.

Conversely, familiar downside inflection points stand out:

  • The S&P’s 50-day moving average, currently 3,045.

  • The 200-day moving average, currently 3,028.

  • The late-June low (2,999.7) matching the 3,000 mark.

Delving deeper, likely last-ditch support continues to match the June low (2,965) and the late-2019 breakout point (2,954).

As always, it’s not just what the benchmarks do, it’s how they do it. Monday’s false breakout is worth tracking for potential follow-through.

But generally speaking, the S&P 500’s intermediate-term bias remains bullish to the extent it maintains a posture atop major support detailed above.

Also see: Charting a bullish July start, Nasdaq extends break 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 VanEck Vectors Gold Miners ETF /zigman2/quotes/206399889/composite GDX -1.76%  is acting well technically.

As illustrated, the group has recently reached seven-year highs, clearing resistance matching the May peak.

The prevailing upturn originates from support matching the May low (31.30) and the April gap (31.50). An intermediate-term target projects to the 43.70 area.

Conversely, the breakout point (37.50) pivots to first support and is followed by the ascending 50-day moving average. A sustained posture higher signals a firmly-bullish bias.

Air Products & Chemicals, Inc. is a well positioned large-cap name. (Yield = 2.0%.)

Earlier this month, the shares knifed to record highs, rising after the company announced an agreement to develop a $5 billion hydrogen-based ammonia plant in Saudi Arabia.

The breakout punctuates a bullish cup-and-handle defined by the March and June lows.

Though near-term extended, and due to consolidate, the shares are attractive on a pullback. Tactically, the breakout point (257.00) is followed by the ascending 50-day moving average, a level closely tracking trendline support.

Initially profiled June 22, First Solar, Inc. /zigman2/quotes/209356097/composite FSLR -3.52%  has returned 12.0% and remains well positioned.

Technically, the shares have recently knifed to four-month highs, staging a strong-volume break from the 200-day moving average.

The ensuing pullback has been comparably flat, fueled by decreased volume, positioning the shares to extend the uptrend. Tactically, trendline support is rising toward the breakout point (54.50). A posture higher signals a firmly-bullish bias.

Also notice the pending golden cross — or bullish 50-day/200-day moving average crossover — signaling that the intermediate-term uptrend has overtaken the longer-term trend.

MaxLinear, Inc. /zigman2/quotes/200823803/composite MXL +0.80%  is a mid-cap semiconductor name positioned to rise.

As illustrated, the shares have recently knifed to 52-week highs, rising after the company’s revised second-quarter outlook.

The subsequent flag pattern signals muted selling pressure, positioning the shares to build on the strong-volume spike. Tactically, trendline support is rising toward the top of the gap (23.00), and is followed by the deeper breakout point (21.90).

Finally, Acadia Pharmaceuticals, Inc. /zigman2/quotes/205236646/composite ACAD +4.07%  is a well positioned mid-cap biotech name.

The shares started July with a breakout, knifing to all-time highs from a well-defined range.

The subsequent pullback places the shares at an attractive entry near the breakout point (52.70) and 12.2% under the July peak. Tactically, trendline support is rising toward the former range top. The prevailing rally attempt is intact barring a violation.

More broadly, the shares are well positioned on the 10-year chart, placing distance atop the 2015 peak.

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* (Click symbol for chart.) Date Profiled
Consumer Discretionary Select Sector SPDR XLY July 13
Alphabet, Inc. GOOGL July 13
Sony Corp. SNE July 13
Eldorado Gold Corp. EGO July 13
SunPower Corp. SPWR July 13
Ceridian HCM Holding, Inc. CDAY July 10
Neurocrine Biosciences, Inc. NBIX July 10
Amgen, Inc. AMGN July 9
Zendesk, Inc. ZEN July 9
D.R.Horton, Inc. DHI July 9
Taylor Morrison Home Corp. TMHC July 9
LGI Homes, Inc. LGIH July 8
Walmart, Inc. WMT July 8
J.B. Hunt Transport Services, Inc. JBHT July 8
Analog Devices, Inc. ADI July 7
Akamai Technologies, Inc. AKAM July 6
Verisk Analytics, Inc. VRSK July 6
Big Lots, Inc. BIG July 1
Tandem Diabetes Care, Inc. TNDM July 1
Boeing Co. BA June 30
Dell Technologies, Inc. DELL June 30
Zebra Technologies Corp. ZBRA June 30
Box, Inc. BOX June 29
Yeti Holdings, Inc. YETI June 25
Arrowhead Pharmaceuticals, Inc. ARWR June 25
Danaher Corp. DHR June 24
RH RH June 24
Hologic, Inc. HOLX June 23
First Solar, Inc. FSLR June 22
Momenta Pharmaceuticals, Inc. MNTA June 22
SPDR S&P Biotech ETF XBI June 19
Lowe’s Companies LOW June 19
Fiverr International, Ltd. FVRR June 19
Chegg, Inc. CHGG June 18
Fastly, Inc. FSLY June 18
Arena Pharmaceuticals, Inc. ARNA June 18
Etsy, Inc. ETSY June 17
Skyworks Solutions, Inc. SWKS June 16
Lululemon Athletica, Inc. LULU June 16
Carvana Co. CVNA June 10
Williams-Sonoma, Inc. WSM June 9
HubSpot, Inc. HUBS June 8
Square, Inc. SQ June 8
United Parcel Service, Inc. UPS June 5
Micron Technology, Inc. MU June 5
Xilinx, Inc. XLNX June 4
KLA Corp. KLAC June 4
FedEx Corp. FDX June 3
SPDR S&P Retail ETF XRT June 3
ASML Holding N.V. ASML June 1
Datadog, Inc. DDOG June 1
iShares MSCI Japan ETF EWJ May 29
SolarEdge Technologies, Inc. SEDG May 29
Splunk, Inc. SPLK May 28
Microchip Technology, Inc. MCHP May 27
Synopsis, Inc. SNPS May 27
SSR Mining, Inc. SSRM May 27
Twilio, Inc. TWLO May 26
Take-Two Interactive Software, Inc. TTWO May 26
Lam Research Corp. LRCX May 26
Marvell Technology Group, Ltd. MRVL May 26
Cisco Systems, Inc. CSCO May 21
Agios Pharmaceuticals, Inc. AGIO May 20
Cree, Inc. CREE May 20
Applied Materials, Inc. AMAT May 19
Alteryx, Inc. AYX May 18
iShares Silver Trust SLV May 15
Agnico Eagle Mines, Ltd. AEM May 15
Agilent Technologies, Inc. A May 15
Halozyme Therapeutics, Inc. HALO May 15
Wix.com, Ltd. WIX May 13
Extreme Networks, Inc. EXTR May 13
Qualcomm, Inc. QCOM May 12
Zynga, Inc. ZNGA May 12
Kinross Gold Corp. KGC May 11
Avalara, Inc. AVLR May 8
Salesforce.com, Inc. CRM May 8
Facebook, Inc. FB May 7
Spotify Technology S.A. SPOT May 5
CrowdStrike Holdings, Inc. CRWD May 4
iRobot Corp. IRBT May 4
Inphi Corp. IPHI Apr. 29
Qorvo, Inc. QRVO Apr. 29
Old Dominion Freight Line, Inc. ODFL Apr. 29
Dollar General Corp. DG Apr. 28
AngloGold Ashanti Ltd. AU Apr. 28
Cadence Design Systems, Inc. CDNS Apr. 27
ServiceNow, Inc. NOW Apr. 27
Snap, Inc. SNAP Apr. 27
Five9, Inc. FIVN Apr. 24
Chewy, Inc. CHWY Apr. 24
Tesla, Inc. TSLA Apr. 23
Shopify, Inc. SHOP Apr. 23
iShares Nasdaq Biotechnology ETF IBB Apr. 21
Teradyne, Inc. TER Apr. 20
Electronic Arts, Inc. EA Apr. 20
VanEck Vectors Semiconductor ETF SMH Apr. 17
Coupa Software, Inc. COUP Apr. 17
Veeva Systems, Inc. VEEV Apr. 17
American Tower Corp. AMT Apr. 17
Okta, Inc. OKTA Apr. 16
Target Corp. TGT Apr. 16
Netflix, Inc. NFLX Apr. 14
VanEck Vectors Gold Miners ETF GDX Apr. 14
Invesco QQQ Trust QQQ Apr. 14
Ciena Corp. CIEN Apr. 6
Seattle Genetics, Inc. SGEN Apr. 6
DocuSign, Inc. DOCU Apr. 3
Zscaler, Inc. ZS Apr. 3
RingCentral, Inc. RNG Mar. 30
Activision Blizzard, Inc. ATVI Mar. 30
Regeneron Pharmaceuticals, Inc. REGN Mar. 30
Apple, Inc. AAPL Mar. 27
Nvidia Corp. NVDA Mar. 27
Dexcom, Inc. DXCM Mar. 27
Amazon.com, Inc. AMZN Mar. 26
Stamps.com, Inc. STMP Mar. 26
Quidel Corp. QDEL Mar. 26
Domino’s Pizza, Inc. DPZ Mar. 20
Kroger Co. KR Mar. 19
Zoom Video Communications, Inc. ZM Mar. 19
iShares MSCI Emerging Markets ETF EEM Mar. 19
Newmont Corp. NEM Jan. 13
Atlassian Corp. TEAM Jan. 7
SPDR Gold Shares ETF GLD Jan. 2
Teledoc Health, Inc. TDOC Nov. 1
Microsoft Corp. MSFT Feb. 22
* Click each symbol for current chart.
/zigman2/quotes/206399889/composite
US : U.S.: NYSE Arca
$ 41.36
-0.74 -1.76%
Volume: 24.53M
Sept. 18, 2020 4:00p
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/zigman2/quotes/209356097/composite
US : U.S.: Nasdaq
$ 61.75
-2.25 -3.52%
Volume: 4.97M
Sept. 18, 2020 4:00p
P/E Ratio
66.83
Dividend Yield
N/A
Market Cap
$6.54 billion
Rev. per Employee
$350,897
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/zigman2/quotes/200823803/composite
US : U.S.: NYSE
$ 23.93
+0.19 +0.80%
Volume: 1.09M
Sept. 18, 2020 4:00p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$1.77 billion
Rev. per Employee
$520,970
loading...
/zigman2/quotes/205236646/composite
US : U.S.: Nasdaq
$ 42.42
+1.66 +4.07%
Volume: 2.42M
Sept. 18, 2020 4:00p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$6.74 billion
Rev. per Employee
$520,481
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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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