By Michael Ashbaugh, MarketWatch
Looking elsewhere, the SPDR Trust S&P 500 has extended a more persistent November breakout.
Recall that near-term inflection points match the mid-month gap, at 309.64 and 310.26. (See the Nov. 19 review.)
Last week’s closing low (310.27) registered just above the top of the gap (310.26) and has been punctuated by upside follow-through.
Placing a finer point on the S&P 500, its backdrop remains firmly bullish and relatively straightforward.
To start, the index has maintained its breakout point (3,100) punctuating a shallow, and apparently short-lived, late-month pullback. The successful test of first support is constructive.
More immediately, Tuesday’s early session high (3,139.3) has effectively matched the S&P’s intermediate-term target (3,140), detailed repeatedly. A slightly more distant target now projects to the 3,164 area.
Conversely, recall that major support matches the S&P 500’s breakout point, an area spanning from 3,022 to 3,028.
The ascending 50-day moving average, currently 3,023, matches major support. The S&P’s intermediate- to longer-term bias remains firmly bullish barring a violation.
Beyond technical levels, the late-year price action remains rotational, an added bull-market tailwind.
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 MSCI Japan ETF /zigman2/quotes/201162210/composite EWJ -0.75% is acting well technically. (Yield = 1.5%.)
Specifically, the shares have asserted an orderly November range, digesting a rally to 52-week highs.
The prevailing upturn originates from the early-September rally atop trendline resistance, an area closely matching the 50- and 200-day moving averages. Separately, the rally punctuates a decisive break atop a nearly two-year downtrend, detailed on the weekly chart.
More immediately, the tight November range signals still muted selling pressure, despite the steep rally, likely laying the groundwork for incremental follow-through. Tactically, the 50-day moving average is rising toward the range bottom (59.20) and a sustained posture higher supports a bullish bias.
Moving to U.S. sectors, the Health Care Select Sector SPDR /zigman2/quotes/205918244/composite XLV +0.08% has taken flight, reaching all-time highs. (Yield = 1.5%.)
Technically, the group has staged a bull-flag breakout, knifing from the tight early-November range.
Against this backdrop, the prevailing upturn has registered as a two standard deviation breakout, encompassing two closes atop the 20-day Bollinger bands over the prior seven sessions.
As always, closes atop the Bollinger bands signal a tension between time horizons. Though near-term extended, the statistically unusual rally is longer-term bullish, and the group is attractive on a pullback. Tactically, near-term support (97.50) is followed by the firmer breakout point (95.70).
Moving to specific names, Target Corp. /zigman2/quotes/207799045/composite TGT -1.39% is a large-cap retailer taking flight. (Yield = 2.1%.)
As illustrated, the shares have recently gapped sharply higher, knifing to record territory after the company’s third-quarter results.
Though still near-term overbought, the shares are attractive on a pullback. Tactically, the top of the gap (118.36) is followed by the deeper breakout point, circa 114.00.
Slightly more broadly, consider that the November gap marks Target’s second straight earnings-fueled spike.
Initially profiled Nov. 1, Teladoc Health, Inc. /zigman2/quotes/207420252/composite TDOC -0.22% has added 7.1% and remains well positioned.
Late last month, the shares knifed to 52-week highs, rising after the company’s strong quarterly results.
The subsequent flag has been punctuated by this week’s follow-through amid increased volume. Tactically, a near-term floor (81.00) is followed by the range bottom (77.50) and a sustained posture higher supports a bullish bias.
Finally, MKS Instruments, Inc. /zigman2/quotes/208573663/composite MKSI -2.34% is a large-cap developer of process control solutions.
Technically, the shares have recently knifed to 17-month highs, gapping sharply higher after the company’s third-quarter results.
The ensuing pullback places the shares at an attractive entry near the top of the gap (102.10) and 8.2% under the October peak. Delving slightly deeper, the 50-day moving average, currently 100.70, has marked an inflection point, and the prevailing rally attempt is firmly 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.
|UnitedHealth Group, Inc.||UNH||Nov. 25|
|LogMeIn, Inc.||LOGM||Nov. 25|
|Stanley Black & Decker, Inc.||SWK||Nov. 25|
|Workday, Inc.||WDAY||Nov. 25|
|Baidu, Inc.||BIDU||Nov. 22|
|International Game Technology||IGT||Nov. 22|
|Westlake Chemical Corp.||WLK||Nov. 22|
|Bank of America Corp.||BAC||Nov. 21|
|CyberArk Software Ltd.||CYBR||Nov. 21|
|Atlassian Corp.||TEAM||Nov. 21|
|Medtronic plc||MDT||Nov. 21|
|Wheaton Precious Metals Corp.||WPM||Nov. 20|
|Okta, Inc.||OKTA||Nov. 20|
|Veeco Instruments, Inc.||VECO||Nov. 20|
|Carvana Co.||CVNA||Nov. 20|
|Nevro Corp.||NVRO||Nov. 19|
|Avalara, Inc.||AVLR||Nov. 19|
|Kroger Co.||KR||Nov. 19|
|Honeywell International, Inc.||HON||Nov. 18|
|PVH Corp.||PVH||Nov. 18|
|Veeva Systems, Inc.||VEEV||Nov. 18|
|Agios Pharmaceuticals, Inc.||AGIO||Nov. 18|
|Xerox Holding Corp.||XRX||Nov. 15|
|NetApp, Inc.||NTAP||Nov. 15|
|Aptiv, plc||APTV||Nov. 15|
|Materials Select Sector SPDR||XLB||Nov. 14|
|Allstate Corp.||ALL||Nov. 14|
|Adobe, Inc.||ADBE||Nov. 14|
|Amkor Technology, Inc.||AMKR||Nov. 14|
|Cimarex Energy Co.||XEC||Nov. 14|
|Walt Disney Co.||DIS||Nov. 13|
|Zebra Technologies Corp.||ZBRA||Nov. 13|
|Steel Dynamics, Inc.||STLD||Nov. 13|
|Broadcom, Inc.||AVGO||Nov. 12|
|AstraZenaca, plc||AZN||Nov. 12|
|Health Care Select Sector SPDR||XLV||Nov. 11|
|United Parcel Service, Inc.||UPS||Nov. 11|
|Nucor Corp.||NUE||Nov. 11|
|Arrowhead Pharmaceuticals, Inc.||ARWR||Nov. 11|
|Advanced Micro Devices, Inc.||AMD||Nov. 7|
|NetScout Systems, Inc.||NTCT||Nov. 7|
|AudioCodes, Ltd.||AUDC||Nov. 7|
|iShares Transportation Average ETF||IYT||Nov. 6|
|Caterpillar, Inc.||CAT||Nov. 6|
|SPDR S&P Regional Banking ETF||KRE||Nov. 5|
|Alibaba Holdings Group, Ltd.||BABA||Nov. 5|
|U.S. Steel Corp.||X||Nov. 5|
|Alphabet, Inc.||GOOGL||Nov. 4|
|InterDigital, Inc.||IDCC||Nov. 4|
|Check Point Software Technologies, Inc.||CHKP||Nov. 4|
|Northern Trust Corp.||NTRS||Nov. 4|
|Teledoc Health, Inc.||TDOC||Nov. 1|
|Brooks Automation, Inc||BRKS||Nov. 1|
|Salesforce.com, Inc.||CRM||Oct. 31|
|Qualcomm, Inc.||QCOM||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|
|Financial Select Sector SPDR||XLF||Oct. 29|
|Microsoft Corp.||MSFT||Oct. 29|
|Citigroup, Inc.||C||Oct. 28|
|Hilton Worldwide Holdings, Inc.||HLT||Oct. 28|
|SPDR S&P Retail ETF||XRT||Oct. 28|
|Generac Holdings, Inc.||GNRC||Oct. 25|
|Hewlett Packard Enterprise Co.||HPE||Oct. 24|
|RingCentral, Inc.||RNG||Oct. 24|
|United Technologies Corp.||UTX||Oct. 23|
|Union Pacific Corp.||UNP||Oct. 23|
|iShares MSCI South Korea ETF||EWY||Oct. 22|
|Nvidia Corp.||NVDA||Oct. 22|
|Tower Semiconductor Ltd.||TSEM||Oct. 21|
|PNC Financial Services Group, Inc.||PNC||Oct. 21|
|Tesla, Inc.||TSLA||Oct. 21|
|iShares MSCI United Kingdom ETF||EWU||Oct. 18|
|Garmin, Ltd.||GRMN||Oct. 18|
|Fastenal Co.||FAST||Oct. 17|
|Knight-Swift Transportation Holdings||KNX||Oct. 17|
|Facebook, Inc.||FB||Oct. 16|
|Celanese Corp.||CE||Oct. 16|
|Qorvo, Inc.||QRVO||Oct. 16|
|Skyworks Solutions, Inc.||SWKS||Oct. 15|
|Jabil Inc.||JBL||Oct. 15|
|Deere & Co.||DE||Oct. 14|
|VMWare, Inc.||VMW||Oct. 14|
|Crocs, Inc.||CROX||Oct. 9|
|TJX Companies, Inc.||TJX||Oct. 8|
|PriceSmart, Inc.||PSMT||Oct. 8|
|Comtech Telecommunications Corp.||CMTL||Oct. 4|
|Seattle Genetics, Inc.||SGEN||Oct. 1|
|Emerson Electric Co.||EMR||Sept. 30|
|PPG Industries, Inc.||PPG||Sept. 30|
|Taiwan Semiconductor Manufacturing Co.||TSM||Sept. 27|
|CDW Corp.||CDW||Sept. 27|
|Sony Corp.||SNE||Sept. 26|
|Nike, Inc.||NKE||Sept. 26|
|Toll Brothers, Inc.||TOL||Sept.25|
|Group 1 Automotive, Inc.||GPI||Sept.25|
|Intel Corp.||INTC||Sept. 18|
|Keysight Technologies, Inc.||KEYS||Sept. 18|
|Packaging Corp. of America||PKG||Sept. 18|
|JPMorgan Chase & Co.||JPM||Sept. 16|
|Guidewire Software, Inc.||GWRE||Sept. 16|
|iShares Japan ETF||EWJ||Sept. 13|
|VanEck Vectors Semiconductor ETF||SMH||Sept. 11|
|Kansas City Southern||KSU||Sept. 10|
|CVS Corp.||CVS||Sept. 5|
|Lam Research Corp.||LRCX||Sept. 3|
|iShares U.S. Home Construction ETF||ITB||Aug. 27|
|Apple, Inc.||AAPL||Aug. 21|
|SPDR S&P Homebuilders ETF||XHB||Aug. 21|
|Reliance Steel & Aluminum Co.||RS||Aug. 21|
|XPO Logistics, Inc.||XPO||Aug. 20|
|Itron, Inc.||ITRI||Aug. 19|
|Cirrus Logic||CRUS||Aug. 16|
|Builders FirstSource, Inc.||BLDR||Aug. 16|
|D.R. Horton, Inc.||DHI||July 31|
|Teradyne, Inc.||TER||July 30|
|Franco-Nevada Corp.||FNV||July 18|
|J.B. Hunt Transport Services, Inc.||JBHT||July 15|
|Owens Corning||OC||July 11|
|Inphi Corp.||IPHI||July 8|
|Lululemon Athletica, Inc.||LULU||June 19|
|Ross Stores, Inc.||ROST||June 14|
|Dollar General Corp.||DG||June 5|
|Consumer Staples Select Sector SPDR||XLP||Mar. 28|
|iShares U.S. Real Estate ETF||IYR||Mar. 13|
|Costco Wholesale Corp.||COST||Mar. 6|
|Walmart, Inc.||WMT||Feb. 22|
|Microsoft Corp.||MSFT||Feb. 22|
|Procter & Gamble Co.||PG||Feb. 8|
|Applied Materials, Inc.||AMAT||Jan. 25|
|Utilities Select Sector SPDR||XLU||Oct. 25|