By Michael Ashbaugh, MarketWatch
Combined, the small- and mid-cap benchmarks are acting well technically — based on today’s backdrop — though a violation of the breakout points would raise a question mark.
Looking elsewhere, the SPDR Trust S&P 500 /zigman2/quotes/209901640/composite SPY -0.35% has extended its October downturn amid increased volume.
In the process, the SPY has edged under its 50-day moving average, currently 340.25.
Tactically, major support matches the February peaks — the 338.34-to-339.08 area — levels formerly defining the SPY’s record highs.
Placing a finer point on the S&P 500, the index has violated major support (3,428), a familiar inflection point detailed repeatedly.
This area effectively underpinned last week’s price action. The pending retest from underneath should be a useful bull-bear gauge.
More immediately, an extended test of the S&P’s 50-day moving average, currently 3,408, remains underway. To reiterate, Tuesday’s early session high (3,407.9) has matched the 50-day.
On further weakness, the former breakout point (3,393) rests nearby, a level matching the February peak.
Delving deeper, likely last-ditch support (3,328) matches the late-September gap — also the early-2020 breakout point — an area from which the steep early-October rally originates.
As always, it’s not just what the benchmarks do, it’s how they do it. But generally speaking, the S&P 500’s intermediate-term bias remains bullish barring a violation of the 3,328 area.
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 S&P Retail ETF /zigman2/quotes/206947004/composite XRT +2.32% is acting well technically. (Yield = 1.2%.)
The group started October with a strong-volume rally, rising to tag record highs.
By comparison, the subsequent pullback has been flat, likely positioning the group to extend its uptrend.
Tactically, the breakout point (53.30) is followed by the 50-day moving average, currently 51.98. Delving slightly deeper, an inflection point matches the early-October gap and the late-September range top (51.60). A posture higher signals a bullish bias.
More broadly, the group remains well positioned on the three-year chart, rising from a continuation pattern hinged to the massive early-2020 V-shaped reversal.
Meanwhile, the SPDR S&P Regional Banking ETF — profiled Monday — continues to act well technically. (Yield = 3.4%.)
As illustrated, the group has knifed atop its 200-day moving average, rising to briefly tag four-month highs. The strong-volume rally punctuates a double bottom defined by the July and September lows.
Underlying the upturn, the group’s relative strength index (not illustrated) has also registered four-month highs, improving the chances of more decisive follow-through.
Tactically, the 200-day moving average, currently 40.22, closely matches the group’s former range top. A breakout attempt is in play barring a violation.
Moving to specific names, Logitech International S.A. /zigman2/quotes/204321690/composite LOGI -0.70% is a large-cap Switzerland-based manufacturer of computer peripherals.
Earlier this month, the shares gapped to all-time highs, rising sharply after the company’s second-quarter results. The ensuing pullback has been fueled by decreased volume, placing the shares 11.5% under the October peak.
Tactically, the breakout point (81.20) closely matches the bottom of the gap. A sustained posture higher signals a firmly-bullish bias.
Initially profiled Sept. 23 — amid the rally atop trendline resistance — Datadog, Inc. /zigman2/quotes/214127379/composite DDOG +1.61% has added 6.8% and remains well positioned.
The shares concluded September with a strong-volume spike, ultimately reaching record territory.
More immediately, the prevailing pullback has been fueled by decreased volume, placing the shares near the breakout point (98.00) and 18.4% under the October peak.
Delving deeper, the ascending 50- and 100-day moving averages have marked inflection points. The prevailing uptrend is intact barring a violation.
Dentsply Sirona, Inc. /zigman2/quotes/204544124/composite XRAY -0.71% is a large-cap developer of dental products and related technologies.
Technically, the shares have recently knifed atop trendline resistance, rising after an analyst upgrade. The subsequent pullback has been comparably flat, fueled by decreased volume, positioning the shares to build on the initial breakout.
Tactically, the trendline pivots to support, and is closely followed by the 200-day moving average, currently 45.30. The prevailing recovery attempt is intact barring a violation.
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.
Initially profiled Aug. 24, Expedia Group, Inc. /zigman2/quotes/202291990/composite EXPE -1.70% has edged slightly higher and remains well positioned.
As illustrated, the shares have rallied to the range top, rising to challenge eight-month highs.
The strong-volume upturn punctuates an extended test of trendline support. Tactically, a near-term floor matches the former range top (97.30). 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.
|Company||Symbol* (Click symbol for chart.)||Date Profiled|
|JetBlue Airways Corp.||JBLU||Oct. 26|
|GameStop Corp.||GME||Oct. 26|
|SPDR S&P Regional Banking ETF||KRE||Oct. 26|
|Maxim Integrated Products, Inc.||MXIM||Oct. 21|
|Alexion Pharmaceuticals, Inc.||ALXN||Oct. 21|
|Jazz Pharmaceuticals, plc||JAZZ||Oct. 21|
|The Travelers Companies, Inc.||TRV||Oct. 21|
|Micron Technology, Inc.||MU||Oct. 20|
|Chegg, Inc.||CHGG||Oct. 20|
|Gogo, Inc.||GOGO||Oct. 20|
|Atlassian Corp.||TEAM||Oct. 19|
|Vulcan Materials Co.||VMC||Oct. 19|
|Utilities Select Sector SPDR||XLU||Oct. 19|
|Northern Trust Co.||NTRS||Oct. 16|
|XPO Logistics, Inc.||XPO||Oct. 16|
|ON Semiconductor Corp.||ON||Oct. 16|
|Ford Motor Co.||F||Oct. 15|
|Texas Instruments, Inc.||TXN||Oct. 15|
|Skyworks Solutions, Inc.||SWKS||Oct. 14|
|Amazon.com, Inc.||AMZN||Oct. 13|
|First Solar, Inc.||FSLR||Oct. 13|
|Nevro Corp.||NVRO||Oct. 12|
|Teradyne, Inc.||TER||Oct. 12|
|SPDR S&P Homebuilders ETF||XHB||Oct. 9|
|Broadcom, Inc.||AVGO||Oct. 9|
|STMicroelectronics N.V.||STM||Oct. 9|
|Shake Shack, Inc.||SHAK||Oct. 9|
|SPDR S&P Biotech ETF||XBI||Oct. 8|
|Alexion Pharmaceuticals, Inc.||ALXN||Oct. 8|
|Twilio, Inc.||TWLO||Oct. 8|
|Cloudflare, Inc.||NET||Oct. 7|
|Ceridian HCM Holding, Inc.||CDAY||Oct. 7|
|Guess, Inc.||GES||Oct. 7|
|Gap, Inc.||GPS||Oct. 6|
|Motorola Solutions, Inc.||MSI||Oct. 6|
|Sunnova Energy International, Inc.||NOVA||Oct. 6|
|Marvell Technology Group,Ltd.||MRVL||Oct. 5|
|Qorvo, Inc.||QRVO||Oct. 2|
|NCR Corp.||NCR||Oct. 2|
|LGI Homes, Inc.||LGIH||Oct. 2|
|SailPoint Technology Holdings, Inc.||SAIL||Oct. 1|
|Martin Marietta Materials, Inc.||MLM||Sept. 30|
|Whirlpool Corp.||WHR||Sept. 29|
|Abercrombie & Fitch Co.||ANF||Sept. 29|
|American Eagle Outfitters||AEO||Sept. 28|
|Twitter, Inc.||TWTR||Sept. 28|
|Blueprint Medicines Co.||BPMC||Sept. 28|
|Zendesk, Inc.||ZEN||Sept. 23|
|Datadog, Inc.||DDOG||Sept. 23|
|Scientific Games Corp.||SGMS||Sept. 23|
|Maxar Technologies, Inc.||MAXR||Sept. 18|
|V.F. Corp.||VFC||Sept. 14|
|Crocs, Inc.||CROX||Sept. 14|
|Five Below, Inc.||FIVE||Sept. 10|
|Dow Inc.||DOW||Sept. 10|
|Eastman Chemical Co.||EMN||Sept. 10|
|CrowdStrike Holdings, Inc.||CRWD||Sept. 9|
|International Paper Co.||IP||Sept. 3|
|Anaplan, Inc.||PLAN||Sept. 2|
|Beyond Meat, Inc.||BYND||Sept. 1|
|Celanese Corp.||CE||Aug. 26|
|Norfolk Southern Corp.||NSC||Aug. 25|
|Westlake Chemical Corp.||WLK||Aug. 25|
|Deere & Co.||DE||Aug. 24|
|Expedia Group, Inc.||EXPE||Aug. 24|
|Johnson Controls International||JCI||Aug. 21|
|Adobe, Inc.||ADBE||Aug. 20|
|Canadian Solar, Inc.||CSIQ||Aug. 20|
|General Motors Co.||GM||Aug. 20|
|Starbucks Corp.||SBUX||Aug. 18|
|Builders FirstSource, Inc.||BLDR||Aug. 18|
|Steel Dynamics, Inc.||STLD||Aug. 17|
|Elanco Animal Health, Inc.||ELAN||Aug. 17|
|Brinker International, Inc.||EAT||Aug. 13|
|Enphase Energy, Inc.||ENPH||Aug. 13|
|Nike, Inc.||NKE||Aug. 11|
|Nucor Corp.||NUE||Aug. 11|
|Freeport McMoRan, Inc.||FCX||Aug. 10|
|Natera, Inc.||NTRA||Aug. 10|
|McDonald’s Corp.||MCD||Aug. 7|
|Industrial Select Sector SPDR||XLI||Aug. 6|
|Sunrun, Inc.||RUN||Aug. 5|
|Penn National Gaming, Inc.||PENN||July 30|
|Procter & Gamble Co.||PG||July 29|
|SPDR S&P Metals & Mining ETF||XME||July 28|
|iShares MSCI South Korea ETF||EWY||July 28|
|Advanced Micro Devices, Inc.||AMD||July 23|
|Best Buy Co., Inc.||BBY||July 22|
|Materials Select Sector SPDR||XLB||July 20|
|Caterpillar, Inc.||CAT||July 20|
|Progressive Corp.||PGR||July 17|
|Livongo Health, Inc.||LVGO||July 17|
|Roku, Inc.||ROKU||July 16|
|Cognizant Technology Solutions, Inc.||CTSH||July 16|
|Consumer Staples Select Sector SPDR||XLP||July 15|
|Home Depot, Inc.||HD||July 15|
|Costco Wholesale Corp.||COST||July 15|
|Consumer Discretionary Select Sector SPDR||XLY||July 13|
|SunPower Corp.||SPWR||July 13|
|Walmart, Inc.||WMT||July 8|
|Big Lots, Inc.||BIG||July 1|
|Tandem Diabetes Care, Inc.||TNDM||July 1|
|Danaher Corp.||DHR||June 24|
|Lowe’s Companies||LOW||June 19|
|Fiverr International, Ltd.||FVRR||June 19|
|Etsy, Inc.||ETSY||June 17|
|HubSpot, Inc.||HUBS||June 8|
|Square, Inc.||SQ||June 8|
|United Parcel Service, Inc.||UPS||June 5|
|FedEx Corp.||FDX||June 3|
|SPDR S&P Retail ETF||XRT||June 3|
|iShares MSCI Japan ETF||EWJ||May 29|
|SolarEdge Technologies, Inc.||SEDG||May 29|
|Synopsis, Inc.||SNPS||May 27|
|Agilent Technologies, Inc.||A||May 15|
|Qualcomm, Inc.||QCOM||May 12|
|Salesforce.com, Inc.||CRM||May 8|
|Facebook, Inc.||FB||May 7|
|Spotify Technology S.A.||SPOT||May 5|
|Dollar General Corp.||DG||Apr. 28|
|ServiceNow, Inc.||NOW||Apr. 27|
|Five9, Inc.||FIVN||Apr. 24|
|Chewy, Inc.||CHWY||Apr. 24|
|Tesla, Inc.||TSLA||Apr. 23|
|VanEck Vectors Semiconductor ETF||SMH||Apr. 17|
|Veeva Systems, Inc.||VEEV||Apr. 17|
|Okta, Inc.||OKTA||Apr. 16|
|Target Corp.||TGT||Apr. 16|
|Invesco QQQ Trust||QQQ||Apr. 14|
|DocuSign, Inc.||DOCU||Apr. 3|
|Zscaler, Inc.||ZS||Apr. 3|
|Apple, Inc.||AAPL||Mar. 27|
|Nvidia Corp.||NVDA||Mar. 27|
|Zoom Video Communications, Inc.||ZM||Mar. 19|
|iShares MSCI Emerging Markets ETF||EEM||Mar. 19|
|SPDR Gold Shares ETF||GLD||Jan. 2|
|Microsoft Corp.||MSFT||Feb. 22|
|* Click each symbol for current chart.|