By Michael Ashbaugh, MarketWatch
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Technically speaking, the major U.S. benchmarks continue to rise amid firmly-bullish November price action.
Against this backdrop, the S&P 500 and Dow industrials have concurrently registered record closes, to start this week, amid still healthy market rotation and expanding sector participation.
Before detailing the U.S. markets’ wider view, the S&P 500’s /zigman2/quotes/210599714/realtime SPX +1.95% hourly chart highlights the past two weeks.
As illustrated, the S&P has extended its November rally, tagging a record close.
Tactically, Tuesday’s early session low (3,588.7) has matched support at the September peak (3,588), a level formerly marking the S&P’s all-time high.
More broadly, the prevailing upturn punctuates last week's flag-like pattern, hinged to the steep early-November rally.
Similarly, the Dow Jones Industrial Average /zigman2/quotes/210598065/realtime DJIA +1.85% has extended its November rally.
In its case, the blue-chip benchmark has registered a record close (29,950) as well as an absolute record peak (29,964).
The marquee 30,000 mark is firmly within view.
True to recent form, the Nasdaq Composite /zigman2/quotes/210598365/realtime COMP +1.55% remains in divergence mode.
This is the lone big three U.S. benchmark not to register a record close Monday.
Nonetheless, the index has maintained major support — the 11,450-to-11,460 area — and continues to generally hold its range top. Constructive price action.
Widening the view to six months adds perspective.
On this wider view, the Nasdaq has weathered last week's downdraft from the range top.
Recall that the downturn has been underpinned by major support (11,460).
More immediately, the prevailing upturn places within view a retest of major resistance. Overhead inflection points match the October peak (11,965), the Nasdaq’s record close (12,056) and the November peak (12,108). (Also see the September peak (12,074), formerly the Nasdaq’s all-time high.)
Looking elsewhere, the Dow Jones Industrial Average has rallied to record highs.
The prevailing upturn punctuates a mid-November flag-like pattern, the tight range effectively underpinned by gap support (29,127).
To reiterate, the 30,000 mark is firmly within striking distance.
More broadly, the prevailing upturn punctuates a successful test of the 200-day moving average at the October low.
Meanwhile, the S&P 500 has rallied to register a record close.
The prevailing follow-through punctuates a flag-like pattern hinged to the steep early-November rally. Recall the October peak (3,550) remains an inflection point.
The bigger picture
Collectively, the bigger-picture backdrop continues to strengthen amid unusually strong November price action.
On a headline basis, the S&P 500 and Dow industrials have concurrently registered record closes.
Meanwhile, the Nasdaq Composite has not broken out, pressured at least partly as a source of funds deployed elsewhere. Very generally, the stay-at-home trade favored the technology sector, and recent vaccine progress has contributed to rotation elsewhere.
Against this backdrop, each big three U.S. benchmark’s intermediate-term bias remains bullish.
Moving to the small-caps, the iShares Russell 2000 ETF has extended a November breakout.
In the process, the small-cap benchmark has notched consecutive record closes, eclipsing its former record close (173.02), established August 2018.
Similarly, the SPDR S&P MidCap 400 ETF has registered consecutive record closes.
More broadly, the small- and mid-cap benchmarks are rising from tandem flag-like patterns hinged to the steep early-November rallies. Bullish price action.