By Michael Ashbaugh, MarketWatch
Looking elsewhere, the SPDR Trust S&P 500 /zigman2/quotes/209901640/composite SPY +0.51% remains relatively resilient, positioned comfortably atop the 200-day moving average.
Conversely, the SPY briefly tagged its 50-day moving average to conclude August, currently 294.04, though the early-September downturn punctuates the latest failed retest.
Against this backdrop, the S&P 500’s well-defined August range seems to be extending to September. Familiar technical levels stand out.
To start, major resistance matches the range top (2,943) and the 50-day moving average, currently 2,944, detailed repeatedly.
Friday’s session high (2,940) registered nominally under resistance to conclude August, punctuating a failed retest. The aggressiveness of the very early September downturn should be a useful bull-bear gauge.
Within the range, the 2,898-to-2,912 area remains an inflection point, an area extending back to late-June and April. (Also see the hourly chart.)
Delving deeper, major support spans from 2,800 to 2,817, an area matching the 200-day moving average, currently 2,806.
Collectively, the S&P 500’s longer-term bias remains bullish barring a violation of the 2,800 support. A sustained posture atop the 2,898-to-2,912 area marks progress, though the intermediate-term bull case would more firmly strengthen with a break from the range top, circa 2,944.
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 iShares U.S. Real Estate ETF /zigman2/quotes/202389641/composite IYR +0.13% is acting well, rising amid easing interest rates. (Yield = 2.8%.)
As illustrated, the group has sustained an August rally to 12-year highs, asserting a flag-like pattern underpinned by the breakout point (90.90).
Delving deeper, trendline support closely tracks the 100-day moving average, currently 88.75, and the group’s technical bias remains bullish barring a violation.
Meanwhile, the Health Care Select Sector SPDR /zigman2/quotes/205918244/composite XLV +1.13% has reached a major technical test. (Yield = 1.7%.)
Specifically, the group is pressing trendline resistance, an area matching the former breakdown point, circa 90.60. The August close (90.60) matched resistance.
On further strength, the 50-day moving average, currently 91.57, closely matches the range top (91.70). An eventual close higher would mark a “higher high” more firmly signaling a trend shift.
The shares initially spiked four weeks ago, knifing to 19-year highs after the company’s quarterly results.
The subsequent orderly range is a continuation pattern — underpinned by the breakout point — positioning the shares to build on the initial strong-volume rally. Tactically, a near-term target projects to the 96 area on a break from the range top (90.20).
Lam Research Corp. /zigman2/quotes/208077897/composite LRCX +1.94% is a large-cap chip equipment name coming to life. (Yield = 2.2%.)
As illustrated, the shares are rising from a bullish cup-and-handle pattern defined by the June and August lows.
Resistance spans from about 210.50 to 211.50, and a close higher would resolve the pattern. An intermediate-term target projects to the 228 area on follow-through.
Conversely, the 50-day moving average, currently 198.10, has marked an inflection point, and a posture higher supports a bullish bias.
Newmont Goldcorp Corp. /zigman2/quotes/205356474/composite NEM +2.65% is a well positioned large-cap gold miner.
Late last month, the shares reached 16-month highs, clearing resistance matching the July peak.
The ensuing pullback places the shares at an attractive entry near the breakout point (39.90) and 3.4% under the August peak.
Slightly more broadly, the August breakout originates from the 50-day moving average, currently 38.70, and the prevailing uptrend is intact barring a violation.
Finally, JinkoSolar Holding Co., Inc. /zigman2/quotes/207601099/composite JKS +0.34% is a small-cap China-based name setting up well for the near-term.
The shares concluded August with a strong-volume breakout, rising after the company’s second-quarter results.
Tactically, the breakout point (20.80) is followed by deeper trendline support, circa 19.50, and the prevailing 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.
|Lowe’s Companies, Inc.||LOW||Aug. 29|
|M.D.C. Holdings, Inc.||MDC||Aug. 29|
|Cheetah Mobile, Inc.||CMCM||Aug. 29|
|PepsiCo, Inc.||PEP||Aug. 28|
|InterXion Holding N.V.||INXN||Aug. 28|
|Urban Outfitters, Inc.||URBN||Aug. 28|
|iShares U.S. Home Construction ETF||ITB||Aug. 27|
|CyrusOne, Inc.||CONE||Aug. 27|
|RingCentral, Inc.||RNG||Aug. 27|
|Arrowhead Pharmaceuticals, Inc.||ARWR||Aug. 27|
|Western Digital Corp.||WDC||Aug. 23|
|MobileIron, Inc.||MOBL||Aug. 23|
|VanEck Vectors Retail ETF||RTH||Aug. 22|
|Carvana Co.||CVNA||Aug. 22|
|Apple, Inc.||AAPL||Aug. 21|
|SPDR S&P Homebuilders ETF||XHB||Aug. 21|
|PagSeguro Digital Ltd.||PAGS||Aug. 21|
|Reliance Steel & Aluminum Co.||RS||Aug. 21|
|AMAG Pharmaceuticals, Inc.||AMAG||Aug. 21|
|KLA Corp.||KLAC||Aug. 20|
|XPO Logistics, Inc.||XPO||Aug. 20|
|Wendy’s Co.||WEN||Aug. 19|
|Itron, Inc.||ITRI||Aug. 19|
|Sonos, Inc.||SONO||Aug. 19|
|Allakos, Inc.||ALLK||Aug. 19|
|Cirrus Logic||CRUS||Aug. 14|
|Builders FirstSource, Inc.||BLDR||Aug. 14|
|Amgen, Inc.||AMGN||Aug. 14|
|Lattice Semiconductor Corp.||LSCC||Aug. 13|
|Kellogg Co.||K||Aug. 13|
|SBA Communications Corp.||SBAC||Aug. 12|
|Zimmer Biomet Holdings, Inc.||ZBH||Aug. 12|
|L3Harris Technologies, Inc.||LHX||Aug. 12|
|iShares U.S. Real Estate ETF||IYR||Aug. 9|
|Akamai Technologies, Inc.||AKAM||Aug. 8|
|D.R. Horton, Inc.||DHI||July 31|
|Teradyne, Inc.||TER||July 30|
|SSR Mining, Inc.||SSRM||July 30|
|United Parcel Service, Inc.||UPS||July 29|
|Abbott Laboratories||ABT||July 26|
|Humana, Inc.||HUM||July 22|
|DexCom, Inc.||DXCM||July 19|
|Agnico Eagle Mines Ltd.||AEM||July 18|
|Franco-Nevada Corp.||FNV||July 18|
|Pan American Silver Corp.||PAAS||July 17|
|Neurocrine Biosciences, Inc.||NBIX||July 17|
|LivePerson, Inc.||LPSN||July 16|
|Texas Instruments, Inc.||TXN||July 15|
|J.B. Hunt Transport Services, Inc.||JBHT||July 15|
|Owens Corning||OC||July 11|
|Twitter, Inc.||TWTR||July 10|
|Micron Technology, Inc.||MU||July 10|
|Inphi Corp.||IPHI||July 8|
|Shake Shack, Inc.||SHAK||June 28|
|FMC Corp.||FMC||June 27|
|SunPower Corp.||SPWR||June 26|
|Williams-Sonoma, Inc.||WSM||June 25|
|VanEck Vectors Gold Miners ETF||GDX||June 21|
|iShares Silver Trust||SLV||June 20|
|Home Depot, Inc.||HD||June 19|
|Lululemon Athletica, Inc.||LULU||June 19|
|SPDR Gold Shares ETF||GLD||June 18|
|Synopsys, Inc.||SNPS||June 17|
|Verisk Analytics, Inc.||VRSK||June 17|
|Medtronic plc||MDT||June 14|
|Ross Stores, Inc.||ROST||June 14|
|Kirkland Lake Gold Ltd.||KL||June 13|
|Dunkin Brands Group, Inc.||DNKN||June 12|
|Ciena Corp.||CIEN||June 11|
|Wix.com Ltd.||WIX||June 10|
|Ecolab, Inc.||ECL||June 10|
|Coca-Cola Co.||KO||June 6|
|Dollar General Corp.||DG||June 5|
|Repligen Corp.||RGEN||June 5|
|Avalara, Inc.||AVLR||May 23|
|Copa Holdings, S.A.||CPA||May 21|
|Atlassian Corp.||TEAM||May 16|
|SolarEdge Technologies, Inc.||SEDG||May 16|
|Roku, Inc.||ROKU||May 15|
|Johnson Controls International||JCI||May 10|
|Take-Two Interactive Software, Inc.||TTWO||May 2|
|Jacobs Engineering Group, Inc.||JEC||May 2|
|Church & Dwight Co., Inc.||CHD||Mar. 29|
|Consumer Staples Select Sector SPDR||XLP||Mar. 28|
|Shopify, Inc.||SHOP||Mar. 27|
|Kimberly-Clark Corp.||KMB||Mar. 15|
|iShares U.S. Real Estate ETF||IYR||Mar. 13|
|Air Products & Chemicals, Inc.||APD||Mar. 11|
|Costco Wholesale Corp.||COST||Mar. 6|
|Universal Display Corp.||OLED||Mar. 1|
|Vulcan Materials Co.||VMC||Mar. 1|
|Walmart, Inc.||WMT||Feb. 22|
|Microsoft Corp.||MSFT||Feb. 22|
|Motorola Solutions, Inc.||MSI||Feb. 15|
|Procter & Gamble Co.||PG||Feb. 8|
|Exact Sciences Corp.||EXAS||Jan. 28|
|Applied Materials, Inc.||AMAT||Jan. 25|
|SBA Communications Corp.||SBAC||Jan. 24|
|Paycom Software, Inc.||PAYC||Jan. 23|
|Advanced Micro Devices, Inc.||AMD||Jan. 22|
|Coupa Software, Inc.||COUP||Jan. 16|
|Veeva Systems, Inc.||VEEV||Jan. 16|
|Okta, Inc.||OKTA||Jan. 9|
|Alteryx, Inc.||AYX||Jan. 8|
|Starbucks Corp.||SBUX||Nov. 5|
|American Tower Corp.||AMT||Nov. 5|
|Utilities Select Sector SPDR||XLU||Oct. 25|
|McDonald’s Corp.||MCD||Oct. 24|
|Yum! Brands, Inc.||YUM||Oct. 18|