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Charting a (bullish) holding pattern, S&P 500 digests break to 5-month highs

Broadly talking, the U.S. benchmarks are appearing nicely technically, although amid more and more sideways late-July value motion.

Nonetheless, range-bound is bullish, in opposition to the prevailing backdrop, and the S&P 500’s intermediate-term path of least resistance continues to level larger.

Before detailing the U.S. markets’ wider view, the S&P 500’s
SPX,
-0.06%
hourly chart highlights the previous two weeks.

As illustrated, the S&P has staged an orderly pullback from five-month highs.

The downturn punctuates a profitable check of help matching the three,200 mark.

Conversely, a acquainted overhead inflection level matches the June peak (3,233) and the 2019 shut (3,230).

Similarly, the Dow Jones Industrial Average
DJIA,
-0.32%
stays range-bound.

Still, the sideways value motion punctuates a decisive mid-July breakout, higher illustrated on the each day chart. The prevailing vary marks a bullish continuation sample.

True to latest kind, the Nasdaq Composite‘s
COMP,
-0.32%
near-term backdrop is comparably jagged.

Nonetheless, the index has weathered a respectable pullback from final week’s file excessive (10,840).

Consider that final week’s low (10,217) intently matched help on the June peak (10,221).

Widening the view to six months provides perspective.

On this wider view, the Nasdaq has whipsawed of late close to file highs.

Recall that final week’s shut marked simply the second shut below the 20-day transferring common, at the moment 10,462, since April 3.

Still, the index has maintained the extra necessary breakout level (10,131), an space adopted by the ascending 50-day transferring common.

Delving deeper, probably last-ditch help matches the February peak (9,838). The Nasdaq’s intermediate-term bias stays bullish barring a violation.

Looking elsewhere, the Dow Jones Industrial Average continues to digest its decisive mid-July breakout. The late-month vary is a bullish continuation sample, positioning it to construct on the preliminary spike.

To reiterate, main help broadly spans from 26,236 to 26,294, ranges matching the 200-day transferring common and the June hole.

Conversely, resistance broadly spans from 27,071 to 27,102, ranges matching the July and March peaks.

Separately, discover the pending golden cross — or bullish 50-day/200-day transferring common crossover — an occasion that may probably sign subsequent week.

Meanwhile, the S&P 500 has pulled in modestly from the July peak.

The downturn has been underpinned by the three,200 mark, a degree higher illustrated on the hourly chart.

The larger image

Collectively, the bigger-picture technicals stay constructive, although the prevailing backdrop shouldn’t be one-size-fits all.

On a headline foundation, the S&P 500 and Dow industrials are digesting early-July breakouts, whereas the Nasdaq Composite continues to whipsaw close to file territory.

Amid the cross currents, every benchmark’s intermediate-term bias stays bullish.

Moving to the small-caps, the iShares Russell 2000 ETF stays in flatlining mode, digesting a decisive break atop the 200-day transferring common.

The preliminary strong-volume spike marked a two customary deviation breakout, and has been punctuated by a tight vary amid decreased quantity. Bullish value motion.

Meanwhile, the SPDR S&P MidCap 400 ETF has additionally sustained a modest break atop the 200-day transferring common.

Combined, the small- and mid-cap benchmarks are rising from help intently matching the 50-day transferring common.

Looking elsewhere, the SPDR Trust S&P 500 has pulled in from five-month highs.

The downturn locations it below the breakout level — the 323.20-to-323.40 space — detailed repeatedly.

Tuesday’s early session excessive (323.20) matched resistance to the decimal. A retest stays underway.

Placing a finer level on the S&P 500, the index continues to act nicely within the broad sweep.

The prevailing downturn from five-month highs has been orderly, underpinned by the three,200 mark. Friday’s session low (3,200.05) matched the spherical quantity, an space that has supplied help throughout 9 straight classes.

More broadly, the 50-day transferring common, at the moment 3,119, intently matches hole help (3,123), an space additionally detailed on the hourly chart.

This is adopted by the late-June low (2,999.7) matching the three,000 mark. An eventual shut below this space would mark a “lower low” — mixed with a violation of the 50-day — elevating a warning flag.

Delving deeper, the late-2019 breakout level (2,954) and June low (2,965) proceed to mark probably last-ditch help.

Collectively, the S&P 500’s intermediate-term bias stays bullish barring a violation of the areas detailed. An orderly late-July consolidation part stays underway.

Also see: Charting a bull-flag breakout, S&P 500 extends rally as volatility recedes.

Tuesday’s Watch List

The charts beneath element names which are technically nicely positioned. These are radar display screen names — sectors or shares poised to transfer within the close to time period. For the unique feedback on the shares beneath, see The Technical Indicator Library.

Drilling down additional, the VanEck Vectors Semiconductor ETF
SMH,
-2.00%
continues to development larger, rising to tag a nominal all-time excessive.

The prevailing upturn punctuates a profitable check of trendline help.

Delving deeper, a firmer flooring matches the breakout level (153.50), an space intently adopted by the ascending 50-day transferring common. The prevailing rally try is unbroken barring a violation.

Separately, contemplate that the group has already barely surpassed its intermediate-term goal, circa 164, detailed beforehand. (See the July 7 evaluate.)

Looking elsewhere, the SPDR S&P Mining and Metals ETF is displaying indicators of life technically. (Yield = 1.9%.)

As illustrated, the group has edged atop the 200-day transferring common, a degree that capped the February and June peaks. The slight breakout raises the flag to a potential major development shift.

Still, a retest of the June peak (23.87) stays underway. An eventual shut larger would mark a “higher high” — mixed with the break atop the 200-day — extra firmly signaling a development shift.

Conversely, the prevailing upturn originates from trendline help intently monitoring the 50-day transferring common. A sustained posture atop the trendline indicators a bullish bias.

Beyond the U.S., the iShares MSCI South Korea ETF is urgent five-month highs. (Yield = 2.3%.)

The prevailing upturn comes from a tight July vary — a coiled spring — laying the groundwork for a probably decisive breakout.

Separately, discover the latest golden cross — or bullish 50-day/200-day transferring common crossover — signaling that the intermediate-term uptrend has overtaken the longer-term development. A near-term goal initiatives to the 62.50 space on follow-through.

Initially profiled April 14, Netflix, Inc.
NFLX,
-0.42%
has returned 19.8% and stays nicely positioned.

As illustrated, the shares have pulled in from file highs, pressured after the corporate’s quarterly outcomes, launched two weeks in the past.

The downturn locations the shares at a gorgeous entry close to the breakout level, circa 468.00, and 16.0% below the July peak.

Tactically, the ascending 50-day transferring common has marked an inflection level, and is adopted by the previous vary high, circa 450. A sustained posture larger indicators a bullish bias.

More broadly, Netflix can also be nicely positioned on the three-year chart, digesting a decisive early-2020 breakout.

Finally, HCA Healthcare, Inc.
HCA,
-0.55%
is a large-cap healthcare providers supplier.

Technically, the shares have just lately knifed atop trendline resistance, rising after the corporate’s second-quarter outcomes. The strong-volume spike locations the shares at four-month highs, and atop the 200-day transferring common.

Underlying the upturn, its relative energy index (not illustrated) has registered two-year highs, bettering the probabilities of upside follow-through.

Tactically, the 200-day is intently adopted by the breakout level, circa 118.00. The prevailing rally try is unbroken barring a violation.

Still nicely positioned

The desk beneath contains names just lately profiled in The Technical Indicator that stay nicely positioned. For the unique feedback, see The Technical Indicator Library.

Company Symbol* (Click image for chart.) Date Profiled
Toll Brothers, Inc. TOL July 27
Landstar System, Inc. LSTR July 27
HP, Inc. HPQ July 24
Advanced Micro Devices, Inc. AMD July 23
AstraZeneca AZN July 23
Vulcan Materials Co. VMC July 23
Best Buy Co., Inc. BBY July 22
iShares Europe ETF IEV July 21
Sonos, Inc. SONO July 21
Fastenal Co. FAST July 21
Materials Select Sector SPDR XLB July 20
Caterpillar, Inc. CAT July 20
Monster Beverage Corp. MNST July 20
Palo Alto Networks, Inc. PANW July 20
iShares U.S. Home Construction ETF ITB July 17
Progressive Corp. PGR July 17
Livongo Health, Inc. LVGO July 17
Roku, Inc. ROKU July 16
Catalent, Inc. CTLT July 16
Cognizant Technology Solutions, Inc. CTSH July 16
Health Care Select Sector SPDR XLV July 16
Consumer Staples Select Sector SPDR XLP July 15
Home Depot, Inc. HD July 15
Costco Wholesale Corp. COST July 15
Kirkland Lake Gold, Ltd. KL July 15
MaxLinear, Inc. MXL July 14
Air Products & Chemicals, Inc. APD July 14
Consumer Discretionary Select Sector SPDR XLY July 13
Alphabet, Inc. GOOGL July 13
Sony Corp. SNE July 13
Eldorado Gold Corp. EGO July 13
SunPower Corp. SPWR July 13
Ceridian HCM Holding, Inc. CDAY July 10
Neurocrine Biosciences, Inc. NBIX July 10
Amgen, Inc. AMGN July 9
Zendesk, Inc. ZEN July 9
D.R.Horton, Inc. DHI July 9
Taylor Morrison Home Corp. TMHC July 9
LGI Homes, Inc. LGIH July 8
Walmart, Inc. WMT July 8
J.B. Hunt Transport Services, Inc. JBHT July 8
Akamai Technologies, Inc. AKAM July 6
Verisk Analytics, Inc. VRSK July 6
Big Lots, Inc. BIG July 1
Tandem Diabetes Care, Inc. TNDM July 1
Boeing Co. BA June 30
Dell Technologies, Inc. DELL June 30
Zebra Technologies Corp. ZBRA June 30
Yeti Holdings, Inc. YETI June 25
Arrowhead Pharmaceuticals, Inc. ARWR June 25
Danaher Corp. DHR June 24
RH RH June 24
Hologic, Inc. HOLX June 23
First Solar, Inc. FSLR June 22
SPDR S&P Biotech ETF XBI June 19
Lowe’s Companies LOW June 19
Fiverr International, Ltd. FVRR June 19
Chegg, Inc. CHGG June 18
Fastly, Inc. FSLY June 18
Etsy, Inc. ETSY June 17
Skyworks Solutions, Inc. SWKS June 16
Lululemon Athletica, Inc. LULU June 16
Carvana Co. CVNA June 10
Williams-Sonoma, Inc. WSM June 9
HubSpot, Inc. HUBS June 8
Square, Inc. SQ June 8
United Parcel Service, Inc. UPS June 5
Micron Technology, Inc. MU June 5
Xilinx, Inc. XLNX June 4
KLA Corp. KLAC June 4
FedEx Corp. FDX June 3
SPDR S&P Retail ETF XRT June 3
ASML Holding N.V. ASML June 1
Datadog, Inc. DDOG June 1
iShares MSCI Japan ETF EWJ May 29
SolarEdge Technologies, Inc. SEDG May 29
Splunk, Inc. SPLK May 28
Microchip Technology, Inc. MCHP May 27
Synopsis, Inc. SNPS May 27
SSR Mining, Inc. SSRM May 27
Twilio, Inc. TWLO May 26
Take-Two Interactive Software, Inc. TTWO May 26
Lam Research Corp. LRCX May 26
Marvell Technology Group, Ltd. MRVL May 26
Cisco Systems, Inc. CSCO May 21
Agios Pharmaceuticals, Inc. AGIO May 20
Cree, Inc. CREE May 20
Applied Materials, Inc. AMAT May 19
Alteryx, Inc. AYX May 18
iShares Silver Trust SLV May 15
Agnico Eagle Mines, Ltd. AEM May 15
Agilent Technologies, Inc. A May 15
Halozyme Therapeutics, Inc. HALO May 15
Wix.com, Ltd. WIX May 13
Extreme Networks, Inc. EXTR May 13
Qualcomm, Inc. QCOM May 12
Zynga, Inc. ZNGA May 12
Kinross Gold Corp. KGC May 11
Avalara, Inc. AVLR May 8
Salesforce.com, Inc. CRM May 8
Facebook, Inc. FB May 7
Spotify Technology S.A. SPOT May 5
CrowdStrike Holdings, Inc. CRWD May 4
Inphi Corp. IPHI Apr. 29
Qorvo, Inc. QRVO Apr. 29
Old Dominion Freight Line, Inc. ODFL Apr. 29
Dollar General Corp. DG Apr. 28
AngloGold Ashanti Ltd. AU Apr. 28
Cadence Design Systems, Inc. CDNS Apr. 27
ServiceNow, Inc. NOW Apr. 27
Five9, Inc. FIVN Apr. 24
Chewy, Inc. CHWY Apr. 24
Tesla, Inc. TSLA Apr. 23
Shopify, Inc. SHOP Apr. 23
iShares Nasdaq Biotechnology ETF IBB Apr. 21
Teradyne, Inc. TER Apr. 20
Electronic Arts, Inc. EA Apr. 20
VanEck Vectors Semiconductor ETF SMH Apr. 17
Coupa Software, Inc. COUP Apr. 17
Veeva Systems, Inc. VEEV Apr. 17
American Tower Corp. AMT Apr. 17
Okta, Inc. OKTA Apr. 16
Target Corp. TGT Apr. 16
Netflix, Inc. NFLX Apr. 14
VanEck Vectors Gold Miners ETF GDX Apr. 14
Invesco QQQ Trust QQQ Apr. 14
Ciena Corp. CIEN Apr. 6
Seattle Genetics, Inc. SGEN Apr. 6
DocuSign, Inc. DOCU Apr. 3
Zscaler, Inc. ZS Apr. 3
RingCentral, Inc. RNG Mar. 30
Activision Blizzard, Inc. ATVI Mar. 30
Regeneron Pharmaceuticals, Inc. REGN Mar. 30
Apple, Inc. AAPL Mar. 27
Nvidia Corp. NVDA Mar. 27
Dexcom, Inc. DXCM Mar. 27
Amazon.com, Inc. AMZN Mar. 26
Stamps.com, Inc. STMP Mar. 26
Quidel Corp. QDEL Mar. 26
Domino’s Pizza, Inc. DPZ Mar. 20
Kroger Co. KR Mar. 19
Zoom Video Communications, Inc. ZM Mar. 19
iShares MSCI Emerging Markets ETF EEM Mar. 19
Newmont Corp. NEM Jan. 13
Atlassian Corp. TEAM Jan. 7
SPDR Gold Shares ETF GLD Jan. 2
Teledoc Health, Inc. TDOC Nov. 1
Microsoft Corp. MSFT Feb. 22
* Click every image for present chart.

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