U.S. stocks are higher early Wednesday, rising as the major benchmarks build on a strong February start.
In the process, the S&P 500 and Nasdaq Composite have challenged their respective record closes — S&P 3,855 and Nasdaq 13,636 — as they vie to register their latest records. Both benchmarks have extended a bullish reversal from relatively well-defined support.
Before detailing the U.S. markets’ wider view, the S&P 500’s
hourly chart highlights the past two weeks.
As illustrated, the S&P has sustained a bullish reversal from major support, an area roughly matching the 50-day moving average.
An extended test of the breakdown point — the 3,826-to-3,830 area, detailed repeatedly — remains underway.
Consider that consecutive session closes — Tuesday (3,826) and Wednesday (3,830) — have effectively matched resistance.
Similarly, the Dow Jones Industrial Average
is pressing familiar resistance.
In its case, Wednesday’s session high (30,793) precisely matched the Dow’s former range bottom. The index has followed through atop resistance early Thursday.
Slightly more broadly, the prevailing upturn punctuates a successful test of last-ditch support at the mid-November range top (29,964).
Against this backdrop, the Nasdaq Composite
remains the strongest major benchmark.
This week’s gap higher places its record close (13,635.99) and absolute record peak (13,728.98) just overhead. (Wednesday’s session high missed a record by about five points.)
Tactically, the top of the gap (13,535) pivots to support.
More broadly, the prevailing upturn originates from major support (12,973) also illustrated below.
Widening the view to six months adds perspective.
On this wider view, the Nasdaq has extended a bullish reversal from major support. The specific area matches the 2020 peak (12,973), detailed repeatedly.
More immediately, the prevailing upturn places record highs under siege. The Nasdaq has ventured atop its record close (13,636) early Thursday amid a breakout attempt that remains underway.
A near-term target projects to the 14,200 area on follow-through.
Looking elsewhere, the Dow Jones Industrial Average has weathered a more aggressive late-January downturn.
This week’s bullish reversal places it back atop the breakdown point (30,283) and the 50-day moving average, currently 30,411. Both areas pivot to support.
Delving deeper, the prevailing upturn originates from a familiar floor (29,964) matching the mid-November range top.
Meanwhile, the S&P 500 has challenged its breakdown point (3,830) across consecutive sessions.
More immediately, the S&P has ventured atop resistance early Thursday, rising within striking distance of record territory. (Also see the hourly chart.)
The bigger picture
As detailed above, the U.S. benchmarks are acting well technically amid a bullish February start.
On a headline basis, each index has maintained major support, rising to challenge familiar resistance.
The Nasdaq Composite has topped five points under its record high (13,729), the S&P 500 has nailed its breakdown point (3,830) across consecutive sessions, and the Dow Jones Industrial Average has tagged its former range bottom (30,793).
Generally speaking, technical price action is bullish within an uptrend.
Moving to the small-caps, the iShares Russell 2000 ETF
has sustained a decisive early-January breakout.
The recent flattish pullback bottomed firmly above the breakout point (201.20) and the ascending 50-day moving average.
Meanwhile, the SPDR S&P MidCap 400 ETF
has reversed to its former range from notable support.
The prevailing upturn punctuates a successful test of the breakout point (425.30), a level closely matching the 2020 peak.
Looking elsewhere, the SPDR Trust S&P 500
has rattled its range across four straight sessions.
The prevailing upturn punctuates a jagged test of support closely matching the 50-day moving average.
Placing a finer point on the S&P 500, the index has tagged its breakdown point — the 3,826-to-3,830 area — across consecutive sessions.
Recall that consecutive session closes — Tuesday (3,826) and Wednesday (3,830) — have matched the breakdown point.
Widening to the six-month view, the S&P 500’s bullish reversal places record highs within view.
To reiterate, the S&P has ventured slightly atop its record close (3,855.36) early Thursday, as it vies to register a new record.
On further strength, the absolute peak (3,870.90) remains firmly within striking distance.
Beyond technical levels, the U.S. sub-sector backdrop remains bullish-leaning as detailed previously. The prevailing bigger-picture uptrend also remains firmly-grounded as it applies to the internals.
Thursday’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 United States Oil Fund
has broken out, knifing to nine-month highs. The fund tracks daily changes in the spot price of light, sweet crude oil.
The strong-volume upturn punctuates a tight range hinged to the sharp early-January spike.
Tactically, trendline support is rising toward the breakout point (36.30), an area followed by the former range bottom (34.90).
Delving deeper, the 50-day moving average marked a former inflection point — (see the September through November price action) — and is rising toward support. A sustained posture atop these areas signals a bullish intermediate-term bias.
Elsewhere, West Texas Intermediate (WTI) crude has concurrently registered 52-week highs, while Brent crude has reached 11-month highs.
Fundamentally, the strong 2021 start is consistent with a reflation trade, an expected return toward pre-virus economic conditions.
Initially profiled Nov. 5, Alphabet, Inc.
has returned 16.8% and remains well positioned.
As illustrated, the shares have taken flight, gapping to record territory after the company’s strong fourth-quarter results.
Though near-term extended, the strong-volume spike punctuates a bull-flag breakout, amid a bullish longer-term backdrop. Tactically, gap support — at 2,013.55 and 1,949.37 — is followed by the breakout point, circa 1,913.
is a well positioned large-cap software vendor.
Late last month, the shares knifed to record territory, clearing resistance matching the November peak. The breakout punctuates consecutive sustained strong-volume spikes, building on the late-November rally.
More immediately, the prevailing pullback has been fueled by decreased volume, placing the shares 21.8% under the January closing peak. Tactically, the breakout point, circa 193, marks a well-defined floor. A sustained posture higher signals a bullish bias.
Diamondback Energy, Inc.
is a well positioned large-cap oil and gas name. (Yield = 2.6%.)
Technically, the shares have rallied to the range top, rising to press 11-month highs. An intermediate-term target projects to the 71 area on follow-through.
Conversely, the trendline is rising toward near-term support (60.30). A breakout attempt is in play barring a violation.
More broadly, the shares are well positioned on the three-year chart, rising from a continuation pattern underpinned by the mid-2020 peak.
Finally, Gogo, Inc.
is a generally disliked (by analysts) mid-cap provider of in-flight connectivity and entertainment services.
As illustrated, the prevailing pullback from five-year highs places the shares near the breakout point and 14.6% under the January closing peak.
Tactically, the post-breakout low (12.90) matches consecutive session lows. The prevailing rally attempt is intact barring a violation.
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|
|Wix.com, Ltd.||WIX||Feb. 3|
|CarMax, Inc.||KMX||Feb. 3|
|Sierra Wireless||SWIR||Feb. 3|
|Toll Brothers, Inc.||TOL||Feb. 2|
|Eagle Materials, Inc.||EXP||Feb. 2|
|Netgear, Inc.||NTGR||Feb. 1|
|Avis Budget Group, Inc.||CAR||Feb. 1|
|Capital One Financial Corp.||COF||Jan. 29|
|NetApp, Inc.||NTAP||Jan. 29|
|Aptiv, plc||APTV||Jan. 29|
|Rio Tinto Group||RIO||Jan. 26|
|Sorrento Therapeutics, Inc.||SRNE||Jan. 26|
|Netflix, Inc.||NFLX||Jan. 25|
|Cummins, Inc.||CMI||Jan. 25|
|Invesco Solar ETF||TAN||Jan. 22|
|Magna International, Inc.||MGA||Jan. 22|
|M.D.C. Holdings, Inc.||MDC||Jan. 22|
|Electronic Arts, Inc.||EA||Jan. 21|
|Zebra Technologies Corp.||ZBRA||Jan. 14|
|Chegg, Inc.||CHGG||Jan. 11|
|Macy’s, Inc.||M||Jan. 11|
|Nexstar Media Group, Inc.||NXST||Jan. 11|
|iShares Transportation Average ETF||IYT||Jan. 11|
|Energy Select Sector SPDR||XLE||Jan. 8|
|Teledoc Health, Inc.||TDOC||Jan. 8|
|Skyworks Solutions, Inc.||SWKS||Jan. 7|
|Financial Select Sector SPDR||XLF||Jan. 7|
|Synaptics, Inc.||SYNA||Jan. 4|
|Sunrun, Inc.||RUN||Dec. 23|
|ShockWave Medical, Inc.||SWAV||Dec. 23|
|JPMorgan Chase & Co.||JPM||Dec. 22|
|Ballard Power Systems, Inc.||BLDP||Dec. 21|
|LivePerson, Inc.||LPSN||Dec. 21|
|United Therapeutics Corp.||UTHR||Dec. 21|
|Shopify, Inc.||SHOP||Dec. 18|
|CyberArk Software Ltd.||CYBR||Dec. 18|
|Calix, Inc.||CALX||Dec. 17|
|Elastic N.V.||ESTC||Dec. 17|
|Cerner Corp.||CERN||Dec. 17|
|Tenet Healthcare Corp.||THC||Dec. 16|
|Williams-Sonoma, Inc.||WSM||Dec. 15|
|iShares Nasdaq Biotechnology ETF||IBB||Dec. 15|
|SDPR S&P Regional Banking ETF||KRE||Dec. 14|
|Etsy, Inc.||ETSY||Dec. 14|
|Plug Power, Inc.||PLUG||Dec. 9|
|F5 Networks, Inc.||FFIV||Dec. 8|
|Emerson Electric Co.||EMR||Dec. 8|
|Zscaler, Inc.||ZS||Dec. 7|
|Fortinet, Inc.||FTNT||Dec. 7|
|Kulicke and Soffa Industries, Inc.||KLIC||Dec. 7|
|Dillard’s, Inc.||DDS||Dec. 4|
|Spotify Technology S.A.||SPOT||Dec. 3|
|Valero Energy Corp.||VLO||Dec. 3|
|Analog Devices, Inc.||ADI||Dec. 2|
|Sonos, Inc.||SONO||Dec. 1|
|American Airlines Group, Inc.||(AAL)||Nov. 30|
|Zillow Group, Inc.||ZG||Nov. 23|
|Bank of America Corp.||(BA)C||Nov. 20|
|SPDR S&P Oil & Gas Exploration and Production ETF||XOP||Nov. 20|
|MetLife, Inc.||MET||Nov. 19|
|Kohl’s Corp.||KSS||Nov. 18|
|Applied Materials, Inc.||AMAT||Nov. 17|
|RingCentral, Inc.||RNG||Nov. 13|
|Regions Financial Corp.||RF||Nov. 13|
|Snap, Inc.||SNAP||Nov. 9|
|Norfolk Southern Corp.||NSC||Nov. 9|
|Communications Services Select Sector SPDR||XLC||Nov. 5|
|Health Care Select Sector SPDR||XLV||Nov. 5|
|Alphabet, Inc.||GOOGL||Nov. 5|
|Keysight Technologies, Inc.||KEYS||Nov. 4|
|8×8, Inc.||EGHT||Nov. 3|
|Exact Sciences Corp.||EXAS||Nov. 2|
|Universal Display Corp.||OLED||Nov. 2|
|Dentsply Sirona, Inc.||XRAY||Oct. 27|
|Maxim Integrated Products, Inc.||MXIM||Oct. 21|
|The Travelers Companies, Inc.||TRV||Oct. 21|
|Micron Technology, Inc.||MU||Oct. 20|
|Vulcan Materials Co.||VMC||Oct. 19|
|ON Semiconductor Corp.||ON||Oct. 16|
|Ford Motor Co.||F||Oct. 15|
|First Solar, Inc.||FSLR||Oct. 13|
|SPDR S&P Homebuilders ETF||XHB||Oct. 9|
|Shake Shack, Inc.||SHAK||Oct. 9|
|SPDR S&P Biotech ETF||XBI||Oct. 8|
|Twilio, Inc.||TWLO||Oct. 8|
|Cloudflare, Inc.||NET||Oct. 7|
|SailPoint Technology Holdings, Inc.||SAIL||Oct. 1|
|Martin Marietta Materials, Inc.||MLM||Sept. 30|
|Abercrombie & Fitch Co.||ANF||Sept. 29|
|Zendesk, Inc.||ZEN||Sept. 23|
|Scientific Games Corp.||SGMS||Sept. 23|
|Crocs, Inc.||CROX||Sept. 14|
|Five Below, Inc.||FIVE||Sept. 10|
|Eastman Chemical Co.||EMN||Sept. 10|
|International Paper Co.||IP||Sept. 3|
|Deere & Co.||DE||Aug. 24|
|Johnson Controls International||JCI||Aug. 21|
|Canadian Solar, Inc.||CSIQ||Aug. 20|
|General Motors Co.||GM||Aug. 20|
|Builders FirstSource, Inc.||BLDR||Aug. 18|
|Enphase Energy, Inc.||ENPH||Aug. 13|
|Freeport McMoRan, Inc.||FCX||Aug. 10|
|Industrial Select Sector SPDR||XLI||Aug. 6|
|Penn National Gaming, Inc.||PENN||July 30|
|SPDR S&P Metals & Mining ETF||XME||July 28|
|iShares MSCI South Korea ETF||EWY||July 28|
|Advanced Micro Devices, Inc.||AMD||July 23|
|Materials Select Sector SPDR||XLB||July 20|
|Caterpillar, Inc.||CAT||July 20|
|Roku, Inc.||ROKU||July 16|
|Consumer Discretionary Select Sector SPDR||XLY||July 13|
|SunPower Corp.||SPWR||July 13|
|Danaher Corp.||DHR||June 24|
|Fiverr International, Ltd.||FVRR||June 19|
|Square, Inc.||SQ||June 8|
|SPDR S&P Retail ETF||XRT||June 3|
|iShares MSCI Japan ETF||EWJ||May 29|
|Synopsis, Inc.||SNPS||May 27|
|Agilent Technologies, Inc.||A||May 15|
|Five9, Inc.||FIVN||Apr. 24|
|Chewy, Inc.||CHWY||Apr. 24|
|Tesla, Inc.||(TSLA)||Apr. 23|
|VanEck Vectors Semiconductor ETF||SMH||Apr. 17|
|Okta, Inc.||OKTA||Apr. 16|
|Target Corp.||TGT||Apr. 16|
|Invesco QQQ Trust||QQQ||Apr. 14|
|Apple, Inc.||AAPL||Mar. 27|
|iShares MSCI Emerging Markets ETF||EEM||Mar. 19|
|Microsoft Corp.||(MSFT)||Feb. 22|
|* Click each symbol for current chart.|