By Michael Ashbaugh, MarketWatch
Looking elsewhere, the SPDR Trust S&P 500 remains relatively resilient.
The SPY has thus far bottomed comfortably atop the 200-day moving average — and averted a ”lower low” last week — outpacing the small- and mid-caps.
Amid the cross currents, the S&P 500’s headline inflection points remain relatively straightforward.
To start, recall that important longer-term support broadly spans from 2,800 to 2,817, levels matching the 200-day moving average and the late-2018 mini-crash range top.
The S&P registered a third successful August retest last week, preserving a bullish longer-term bias. Moreover, the late-week rally registered as internally strong, fueled by nearly 7-to-1 positive breadth.
More immediately, the 2,898-to-2,912 area remains a useful intermediate-term bull-bear gauge.
The S&P has twice violated the 2,912 mark this month, and the tandem violations have punctuated the year’s two biggest single-day downdrafts. Both sessions were fueled by at least 10-to-1 negative breadth, and registered across a narrow eight-session window.
Separately, the top of the gap to start this week (2,913) has closely matched the 2,912 mark. (S&P 2,912 has marked a bull-bear inflection point going back to the July 11 review.)
Collectively, the S&P 500’s bullish longer-term bias is intact. The intermediate-term bull case strengthens to the extent the S&P sustains a reversal atop the 2,898-to-2,912 area. On further strength, the mid-August peak (2,943) closely matches the 50-day moving average, currently 2,946.
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 VanEck Vectors Gold Miners ETF /zigman2/quotes/206399889/composite GDX -5.73% is acting well technically against an otherwise volatile backdrop.
The group started August with a breakout, staging a strong-volume rally to three-year highs amid a safe-haven trade.
By comparison, the ensuing pullback has been orderly, placing the group at an attractive entry near support, circa 28, and 7.4% under the August peak.
Delving deeper, the 50-day moving average is closely followed by firmer support matching the former breakout point (26.10). The group’s uptrend is intact barring a violation.
Looking elsewhere, the iShares China Large-Cap ETF /zigman2/quotes/208670743/composite FXI -5.87% is approaching a major technical test.
As illustrated, the shares have reversed from two-year lows, rising toward the top of the gap (39.76) a level closely matching the breakdown point (39.90). A sustained break atop this area would mark a step toward stabilization.
On further strength, trendline resistance roughly matches the 50- and 200-day moving averages. Eventual follow-through atop this area would more firmly signal a bullish trend shift.
The prevailing upturn has thus far been fueled by decreased volume, reducing the chances of immediate follow-through.
Initially profiled July 10, Twitter, Inc. /zigman2/quotes/203180645/composite TWTR -4.24% has returned 10.8% and remains well positioned.
Late last month, the shares gapped to 52-week highs, rising after the company’s second-quarter results.
The subsequent pullback has been underpinned by the top of the gap — even amid the market downturn — positioning the shares to build on the July spike. Tactically, gap support (40.00) is followed by the 50-day moving average, currently 38.40, and a posture higher supports a bullish bias.
KLA Corp. /zigman2/quotes/209248041/composite KLAC -5.02% is a well positioned large-cap chip equipment name. (Yield = 2.2%.)
The shares initially spiked about six weeks ago, staging a nearly straightline July rally to all-time highs.
Tactically, notable resistance matches the record close (142.65) and the pending retest from underneath is worth tracking. An intermediate-term target projects to the 153 area on follow-through.
Conversely, trendline support closely matches the breakout point, circa 130.50, and the rally attempt is intact barring a violation.
Finally, XPO Logistics, Inc. /zigman2/quotes/205483484/composite XPO -10.03% is a large-cap provider of transportation and logistics services.
The shares started August with a false breakout, rising amid a volume spike after the company’s quarterly results.
Still, the subsequent pullback has been shallow, amid a down market, laying the groundwork for potential follow-through. Tactically, a breakout attempt remains in play barring a violation of the August range bottom (64.25).
Also consider that a golden cross — or bullish 50-day/200-day moving average crossover — signaled to start this week.
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.
|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|
|Extreme Networks, Inc.||EXTR||Aug. 8|
|D.R. Horton, Inc.||DHI||July 31|
|eHealth, Inc.||EHTH||July 31|
|Vulcan Materials Co.||VMC||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|
|Packaging Corp. of America||PKG||July 15|
|J.B. Hunt Transport Services, Inc.||JBHT||July 15|
|Delta Air Lines, Inc.||DAL||July 12|
|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|
|Spotify Technology||SPOT||June 24|
|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|
|Catalent, Inc.||CTLT||June 7|
|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|
|American Express Co.||AXP||Apr. 24|
|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|
|Marvell Technology Group Ltd.||MRVL||Mar. 1|
|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|