Stock Market News – Bull trend confirmed: S&P 500 tags technical target (4,085)
U.S. stocks are mixed early Wednesday, vacillating ahead of the release of the Federal Reserve’s meeting minutes, due out this afternoon.
Against this backdrop, the S&P 500 and Dow industrials are digesting decisive breaks to record territory, while the Nasdaq Composite has sustained an aggressive trendline breakout.
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 its breakout amid still muted selling pressure.
The April peak (4,086) has closely matched an intermediate-term target (4,085) detailed previously.
Conversely, gap support — at 4,035 and 4,020 — is closely followed by the firmer breakout point (3,983).
Similarly, the Dow Jones Industrial Average
is digesting a rally to record territory.
Recall the initial spike punctuated a bull flag — the tight three-session range — also illustrated on the daily chart.
Tactically, the breakout point (33,227) closely matches the top of the gap (33,222).
Meanwhile, the Nasdaq Composite
has sustained a break to six-week highs.
Against this backdrop, next resistance matching the January peak (13,729) remains under siege.
Wednesday’s early session high (13,732) has registered nearby.
Widening the view to six months adds perspective.
On this wider view, the Nasdaq has sustained an aggressive April trendline breakout.
To reiterate, an extended retest of the January peak (13,729) remains underway.
More broadly, the prevailing upturn punctuates a jagged test of the 2020 peak (12,973) preserving a bullish intermediate-term bias.
Looking elsewhere, the Dow Jones Industrial Average is traversing previously uncharted territory.
The prevailing upturn punctuates a late-March flag pattern, underpinned by the 33,000 area.
More broadly, the April breakout originates from the Dow’s former breakout point (32,009). The recently steep rallies — and comparably flat mid-March pullback — signal bullish momentum is intact.
Meanwhile, the S&P 500 is digesting an aggressive rally atop the 4,000 mark.
The April peak (4,086) has effectively matched the S&P’s intermediate-term target (4,085) detailed previously. (See the March 29 review.)
The bigger picture
Collectively, the major U.S. benchmarks are off to a bullish April start.
On a headline basis, the S&P 500 and Dow industrials have sustained decisive breaks to record territory, while the Nasdaq Composite is digesting a sharp trendline breakout.
Each benchmark’s intermediate-term bias remains comfortably bullish.
Moving to the small-caps, the iShares Russell 2000 ETF
— a former market leader — seems to have traded places with the large-cap benchmarks.
Nonetheless, the prevailing range-bound posture, atop the 50-day moving average, is technically constructive against the bigger-picture backdrop.
True to recent form, the SPDR S&P MidCap 400 ETF
remains incrementally stronger.
The prevailing upturn from the 50-day moving average places record highs under siege.
Looking elsewhere, the SPDR Trust S&P 500
has knifed to record highs after previously lagging slightly behind the small- and mid-caps.
Tactically, the breakout point (398.12) pivots to support. Delving deeper, the prevailing upturn originates from a March test of the 50-day moving average.
Placing a finer point on the S&P 500, the index has sustained a decisive breakout.
To reiterate, the April peak (4,086) has effectively matched the S&P’s intermediate-term target (4,085) detailed previously. (See the March 29 review.)
More broadly, the S&P 500 has confirmed its primary uptrend with an aggressive 2.4% April breakout.
Moreover, the prevailing upturn marks an unusual two standard deviation breakout, encompassing consecutive closes atop the 20-day volatility bands.
Tactically, the S&P remains near-term extended, and is due at least a sideways chopping-around phase, if not a deeper pullback. The index has knifed outside the “normal” range of its trailing 20-day volatility.
But more importantly, the recently extreme bullish momentum likely lays the groundwork for longer-term upside follow-through.
Combined, all technical trends continue to point higher, as it applies to the S&P 500, amid a strong second-quarter start.
Wednesday’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 iShares Europe ETF
is acting well technically. (Yield = 1.6%.)
The shares have started April with a decisive breakout, knifing to 12-year highs. The sharp rally confirms the prevailing uptrend, punctuating a relatively tight three-week range. Also recall the orderly year-to-date range, hinged to the sharp November vaccine-fueled rally.
Tactically, the breakout point (50.75) is followed by the late-March low (49.30), an area matching the 50-day moving average.
More broadly, the shares remain well positioned on the 10-year chart, rising from a massive double bottom defined by the 2016 and 2020 lows.
Fundamentally, the prevailing breakout dovetails with persistent euro weakness, most recently detailed Monday. A softer euro generally presents a market tailwind to European stocks.
(The Invesco CurrencyShares Euro Trust is retesting its 200-day moving average from underneath early Wednesday.)
Moving to specific names, ASML Holding N.V.
is a large-cap Netherlands-based chip equipment name.
Technically, the shares have recently knifed to record highs, clearing resistance matching the February peak.
The subsequent pullback has been fueled by decreased volume, placing the shares 4.1% under the April peak. Delving deeper, the breakout point (605.50) pivots to well-defined support. The prevailing rally attempt is firmly-intact barring a violation.
Analog Devices, Inc.
is a large-cap semiconductor name coming to life. (Yield = 1.7%.)
As illustrated, the shares have rallied to the range top, rising to press record territory.
The prevailing upturn punctuates a double bottom defined by the February and March lows.
Tactically, the former range top (157.10) is followed by the 50-day moving average, currently 153.70, a recent bull-bear inflection point. A breakout attempt is in play barring a violation.
Initially profiled Dec. 8, Emerson Electric Co.
has returned 12.5% and remains well positioned. (Yield = 2.2%.)
Tehnically, the shares are challenging record highs matching the March peak. The prevailing upturn punctuates a tight five-session range, laying the groundwork for a potential breakout. A near-term target projects to the 98 area on follow-through.
Conversely, trendline support has roughly tracked the ascending 50-day moving average, currently 87.50, and is followed by the range bottom (86.75). A breakout attempt is in play barring a violation.
Finally, Yum Brands, Inc.
is a large-cap name, operating fast-food restaurants including Taco Bell, KFC and Pizza Hut.
The shares have knifed to 18-month highs, rising amid increased volume after an analyst upgrade.
Underlying the upturn, the relative strength index (not illustrated) has registered its best levels since June, improving the chances of longer-term follow-through.
Though still near-term extended, the shares are attractive on a pullback. Tactically, the breakout point, circa 111.00, pivots to notable support.
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|
|VMware, Inc.||VMW||Apr. 6|
|Autodesk, Inc.||ADSK||Apr. 6|
|Dollar Tree, Inc.||DLTR||Apr. 6|
|Qorvo, Inc.||QRVO||Apr. 5|
|Hess Corp.||HES||Apr. 5|
|Sunnova Energy International, Inc.||NOVA||Apr. 1|
|VanEck Vectors Semiconductor ETF||SMH||Apr. 1|
|Lam Research Corp.||LRCX||Apr. 1|
|NetApp, Inc.||NTAP||Apr. 1|
|FedEx Corp.||FDX||Mar. 31|
|Air Products & Chemicals, Inc.||APD||Mar. 31|
|Vericel Corp.||VCEL||Mar. 31|
|U.S. Steel Corp.||X||Mar. 31|
|F5 Networks, Inc.||FFIV||Mar. 30|
|Ternium S.A.||TX||Mar. 30|
|Target Corp.||TGT||Mar. 30|
|Texas Instruments, Inc.||TXN||Mar. 29|
|NXP Semiconductors N.V.||NXPI||Mar. 29|
|iShares U.S. Real Estate ETF||IYR||Mar. 29|
|Coca-Cola Co.||KO||Mar. 29|
|Home Depot, Inc.||HD||Mar. 26|
|Ferrari N.V.||RACE||Mar. 26|
|Funko Inc||FNKO||Mar. 26|
|Cisco Systems, Inc.||CSCO||Mar. 25|
|Steel Dynamics, Inc.||STLD||Mar. 25|
|Procter & Gamble Co.||PG||Mar. 25|
|Consumer Staples Select Sector SPDR||XLP||Mar. 25|
|iShares U.S. Home Construction ETF||ITB||Mar. 23|
|Lennar Corp.||LEN||Mar. 23|
|Jabil Circuit, Inc.||JBL||Mar. 23|
|Dish Network Corp.||DISH||Mar. 23|
|UnitedHealth Group, Inc.||UNH||Mar. 22|
|Shift4 Payments, Inc.||FOUR||Mar. 19|
|Whirlpool Corp.||WHR||Mar. 19|
|U.S. Bancorp||USB||Mar. 19|
|Nasdaq, Inc.||NDAQ||Mar. 18|
|D.R. Horton, Inc.||DHI||Mar. 18|
|Facebook, Inc.||FB||Mar. 17|
|AutoNation, Inc.||AN||Mar. 17|
|McDonald’s Corp.||MCD||Mar. 16|
|Virtu Financial, Inc.||VIRT||Mar. 16|
|Spirit Airlines, Inc.||SAVE||Mar. 16|
|LKQ Corp.||LKQ||Mar. 15|
|Anthem, Inc.||ANTM||Mar. 15|
|Walgreens Boots Alliance, Inc.||W(BA)||Mar. 12|
|International Paper Co.||IP||Mar. 12|
|iShares Europe ETF||IEV||Mar. 11|
|CME Group, Inc.||CME||Mar. 11|
|3M Co.||MMM||Mar. 11|
|Southwest Airlines Co.||LUV||Mar. 10|
|Big Lots, Inc.||BIG||Mar. 9|
|Alaska Air Group, Inc.||ALK||Mar. 9|
|State Street Corp.||STT||Mar. 8|
|American Eagle Outfitters, Inc.||AEO||Mar. 8|
|Hess Corp.||HES||Mar. 3|
|Beazer Homes USA, Inc.||BZH||Mar. 3|
|Mastercard, Inc.||MA||Mar. 2|
|Boeing Co.||(BA)||Mar. 2|
|Starbucks Corp.||SBUX||Mar. 1|
|Eaton Corp.||ETN||Feb. 25|
|Oracle Corp.||ORCL||Feb. 24|
|United Airlines Holdings, Inc.||UAL||Feb. 24|
|Nucor Corp.||NUE||Feb. 23|
|Signet Jewelers Limited||SIG||Feb. 23|
|Old Dominion Freight Line||ODFL||Feb. 22|
|Seagate Technology||STX||Feb. 19|
|Chevron Corp.||CVX||Feb. 18|
|Lyft, Inc.||LYFT||Feb. 16|
|Intel Corp.||INTC||Feb. 12|
|U.S. Global Jets ETF||JETS||Feb. 9|
|Motorola Solutions, Inc.||MSI||Feb. 9|
|Diamondback Energy, Inc.||FANG||Feb. 4|
|CarMax, Inc.||KMX||Feb. 3|
|Toll Brothers, Inc.||TOL||Feb. 2|
|Avis Budget Group, Inc.||CAR||Feb. 1|
|Capital One Financial Corp.||COF||Jan. 29|
|Cummins, Inc.||CMI||Jan. 25|
|Magna International, Inc.||MGA||Jan. 22|
|M.D.C. Holdings, Inc.||MDC||Jan. 22|
|Zebra Technologies Corp.||ZBRA||Jan. 14|
|Nexstar Media Group, Inc.||NXST||Jan. 11|
|iShares Transportation Average ETF||IYT||Jan. 11|
|Energy Select Sector SPDR||XLE||Jan. 8|
|Skyworks Solutions, Inc.||SWKS||Jan. 7|
|Financial Select Sector SPDR||XLF||Jan. 7|
|Synaptics, Inc.||SYNA||Jan. 4|
|JPMorgan Chase & Co.||JPM||Dec. 22|
|Williams-Sonoma, Inc.||WSM||Dec. 15|
|SDPR S&P Regional Banking ETF||KRE||Dec. 14|
|Emerson Electric Co.||EMR||Dec. 8|
|Fortinet, Inc.||FTNT||Dec. 7|
|Kulicke and Soffa Industries, Inc.||KLIC||Dec. 7|
|Dillard’s, Inc.||DDS||Dec. 4|
|Sonos, Inc.||SONO||Dec. 1|
|American Airlines Group, Inc.||(AAL)||Nov. 30|
|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|
|Regions Financial Corp.||RF||Nov. 13|
|Norfolk Southern Corp.||NSC||Nov. 9|
|Communications Services Select Sector SPDR||XLC||Nov. 5|
|Alphabet, Inc.||GOOGL||Nov. 5|
|Micron Technology, Inc.||MU||Oct. 20|
|ON Semiconductor Corp.||ON||Oct. 16|
|Ford Motor Co.||F||Oct. 15|
|SPDR S&P Homebuilders ETF||XHB||Oct. 9|
|Shake Shack, Inc.||SHAK||Oct. 9|
|Martin Marietta Materials, Inc.||MLM||Sept. 30|
|Abercrombie & Fitch Co.||ANF||Sept. 29|
|Crocs, Inc.||CROX||Sept. 14|
|Five Below, Inc.||FIVE||Sept. 10|
|Deere & Co.||DE||Aug. 24|
|Johnson Controls International||JCI||Aug. 21|
|General Motors Co.||GM||Aug. 20|
|Builders FirstSource, Inc.||BLDR||Aug. 18|
|Industrial Select Sector SPDR||XLI||Aug. 6|
|SPDR S&P Metals & Mining ETF||XME||July 28|
|Materials Select Sector SPDR||XLB||July 20|
|Caterpillar, Inc.||CAT||July 20|
|SPDR S&P Retail ETF||XRT||June 3|
|iShares MSCI Japan ETF||EWJ||May 29|
|Tesla, Inc.||(TSLA)||Apr. 23|
|Apple, Inc.||AAPL||Mar. 27, 2020|
|Microsoft Corp.||(MSFT)||Feb. 22, 2019|
|* Click each symbol for current chart.|