Stock Market News – Charting a bullish March start: S&P 500, Nasdaq maintain major support

Before detailing the U.S. markets’ wider view, the S&P 500’s
US:SPX
 hourly chart highlights the past two weeks.

As illustrated, the S&P has rallied respectably from the 50-day moving average.

Recall that consecutive monthly closes — January and February — have registered within two points of the 50-day moving average amid successful retests.

Conversely, additional overhead matches the range top (3,930), an area that capped last week’s price action.

Meanwhile, the Dow Jones Industrial Average
US:DJIA
 has whipsawed of late near recent record highs.

Put differently, the index has tried to break from its range — in both directions — ultimately concluding with a bull-bear stalemate.

(The Dow initially broke 356 points above the range, then 361 points under the range.)

Against this backdrop, the Nasdaq Composite
US:COMP
remains the weakest major benchmark.

Nonetheless, the index has maintained major support matching the 2020 peak (12,973), an area also illustrated below.  

Widening the view to six months adds perspective.

On this wider view, the Nasdaq has rallied from last-ditch support matching the 2020 peak (12,973), detailed repeatedly.

Last week’s low (13,003) registered slightly above support to punctuate the second straight late-month retest. (The late-January low (12,985) also registered just above support.)

The prevailing rally from support places the Nasdaq back atop its 50-day moving average, currently 13,335.

On further strength, the breakdown point (13,730) marks notable resistance. The pending retest from underneath should be a useful bull-bear gauge.

Looking elsewhere, the Dow Jones Industrial Average remains the strongest major benchmark.

Still, the index has registered a swift 1,000-point whipsaw from last week’s record high.

Recall the Dow has tried to break above, and below, the mid-February range, thus far concluding with a bull-bear stalemate. Range-bound price action is bullish against the prevailing backdrop.

Meanwhile, the S&P 500 has rallied aggressively from its 50-day moving average to punctuate the second straight late-month retest.

To reiterate, the sharp reversal marked the S&P’s biggest single-day gain since June.

The bigger picture

Collectively, the major U.S. benchmarks are acting well technically, on balance, though the recent price action remains uneven.

On a headline basis, the S&P 500 and Nasdaq Composite have maintained major support, rising from a second straight successful retest. (See the daily charts.)

Each big three benchmark’s intermediate-term bias remains bullish.

Moving to the small-caps, the iShares Russell 2000 ETF
US:IWM
 has sustained a February break to record highs.

The prevailing upturn punctuates a successful test of the breakout point (216.70).

Similarly, the SPDR S&P MidCap 400 ETF
US:MDY
 has sustained its break to a higher plateau.

Here again, the MDY has asserted an orderly range, underpinned by the breakout point.

Combined, the small- and mid-cap benchmarks have established firmly-grounded uptrends, punctuated by consecutive successful tests of well-defined support.

Looking elsewhere, the SPDR Trust S&P 500
US:SPY
 has weathered a slightly more aggressive pullback.

The strong-volume downturn has been underpinned by the 50-day moving average, and punctuated by a bullish reversal.

Placing a finer point on the S&P 500, the index has rallied sharply from a jagged test of its 50-day moving average.

From current levels, the former breakout point (3,870) remains a notable floor, also detailed on the daily chart below. A retest is already underway early Tuesday.

Widening to the six-month view, the strong March start punctuates the S&P’s second straight late-month retest of the 50-day moving average.

Recall that consecutive monthly closes — January and February — registered within two points of the 50-day moving average.

More immediately, the S&P’s bullish reversal places it back atop the former breakout point (3,870). Constructive price action.

Beyond technical levels, the U.S. sub-sector backdrop remains bullish — as detailed last week — and the market internals continue to signal a reasonably firmly-grounded uptrend. The S&P 500’s intermediate-term bias remains comfortably bullish, based on today’s backdrop.

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 Industrial Select Sector SPDR
US:XLI
 is acting well technically amid market rotation.

Late last month, the group reached record territory, clearing well-defined resistance amid a sustained volume increase.

The subsequent pullback has been orderly, underpinned by the breakout point (90.30), positioning the group to extend its uptrend.

More broadly, the group remains well positioned on the three-year chart, rising from a continuation pattern hinged to the 2020 V-shaped reversal. A near-term target continues to project to the 96 area.

Initially profiled Feb. 12, Dow 30 component Intel Corp.
US:INTC
 has edged slightly higher and remains well positioned. (Yield = 2.3%.)

The shares initially spiked six weeks ago, staging a mid-January gap higher after the company appointed a new CEO. The breakout punctuated a massive bullish island reversal defined by the July and January gaps. (See the one-year chart.)

The subsequent pullback filled the gap to punctuate a successful test of the 200-day moving average.

More immediately, the prevailing flag-like pattern — the tight two-week range — positions the shares to build on the January spike. Tactically, notable support spans from about 59.20 to 60.00. A sustained posture higher signals a comfortably bullish bias.

Boeing Co.
US:BA
 is a Dow 30 component coming to life.

Late last month, the shares knifed to two-month highs, clearing resistance on increased volume.

The upturn builds on the initial early-November vaccine-fueled spike and subsequent early-February trendline breakout.

Tactically, the breakout point, circa 217.00, is closely followed by the 50-day moving average, currently 211.30, a recent bull-bear inflection point. The prevailing rally attempt is intact barring a violation.

Mastercard, Inc.
US:MA
 is a well positioned large-cap name.

As illustrated, the shares have rallied to the range top, rising to briefly tag a fractional record high. In practice, resistance matching the August peak (367.25) remains under siege.

Underlying the upturn, its relative strength index (not illustrated) has registered six-month highs, improving the chances of eventual follow-through.

More broadly, the shares are well positioned on the three-year chart, rising from a prolonged continuation pattern hinged to the massive 2020 V-shaped reversal. A near-term target projects to the 385 area on follow-through.

Initially profiled Dec. 14, Etsy, Inc.
US:ETSY
 has returned 43.9% and remains well positioned.

Technically, the shares have staged a strong-volume break to record territory, rising after the company’s quarterly results, released late last week.

The upturn originates from support matching the late-January low, and punctuates a modified double bottom.

Tactically, the breakout point (239.50) is followed by the former range top (226.70). A sustained posture higher signals a firmly-bullish bias.

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
Starbucks Corp.	SBUX	Mar. 1
MaxLinear, Inc.	MXL	Mar. 1
Oceaneering International, Inc.	OII	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
Canada Goose Holdings, Inc.	GOOS	Feb. 19
Texas Instruments, Inc.	TXN	Feb. 18
Zynga, Inc.	ZNGA	Feb. 18
Chevron Corp.	CVX	Feb. 18
Lyft, Inc.	LYFT	Feb. 16
Intel Corp.	INTC	Feb. 12
KLA Corp.	KLAC	Feb. 12
Pinterest, Inc.	PINS	Feb. 12
Helmerich & Payne, Inc.	HP	Feb. 11
U.S. Global Jets ETF	JETS	Feb. 9
Motorola Solutions, Inc.	MSI	Feb. 9
iShares U.S. Home Construction ETF	ITB	Feb. 8
KeyCorp	KEY	Feb. 5
Diamondback Energy, Inc.	FANG	Feb. 4
Wix.com, Ltd.	WIX	Feb. 3
CarMax, Inc.	KMX	Feb. 3
Toll Brothers, Inc.	TOL	Feb. 2
Eagle Materials, Inc.	EXP	Feb. 2
Avis Budget Group, Inc.	CAR	Feb. 1
Capital One Financial Corp.	COF	Jan. 29
Aptiv, plc	APTV	Jan. 29
Rio Tinto Group	RIO	Jan. 26
Netflix, Inc.	NFLX	Jan. 25
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
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
Skyworks Solutions, Inc.	SWKS	Jan. 7
Financial Select Sector SPDR	XLF	Jan. 7
Synaptics, Inc.	SYNA	Jan. 4
JPMorgan Chase & Co.	JPM	Dec. 22
United Therapeutics Corp.	UTHR	Dec. 21
Shopify, Inc.	SHOP	Dec. 18
Calix, Inc.	CALX	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
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.	BAC	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
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
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
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
Deere & Co.	DE	Aug. 24
Johnson Controls International	JCI	Aug. 21
General Motors Co.	GM	Aug. 20
Builders FirstSource, Inc.	BLDR	Aug. 18
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
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
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.