Charting market cross currents, S&P 500 violates the breakout point The Technical Indicator

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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.

Also see: Charting a successful technical test, S&P 500 nails the breakout point.

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
Medtronic	MDT	Aug. 28
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
RH	RH	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.