Charting market cross currents, S&P 500 maintains 200-day average

Charting market cross currents, S&P 500 maintains 200-day average

Technically talking, the main U.S. benchmarks are poised to conclude the second quarter in opposition to an more and more uneven, however nonetheless usually bullish, bigger-picture backdrop.

On a headline foundation, the S&P 500 has survived a jagged retest of its 200-day transferring average, whereas the Nasdaq Composite continues to digest final week’s break to document territory.

Before detailing the U.S. markets’ wider view, the S&P 500’s
SPX,
+0.63%
hourly chart highlights the previous two weeks.

As illustrated, the S&P has weathered a jagged retest of the 200-day transferring average, at the moment 3,021.

From present ranges, preliminary overhead matches the December low (3,070) and is adopted by the latest breakdown level, circa 3,090.

Meanwhile, the Dow Jones Industrial Average
DJIA,
-0.19%
continues to lag behind.

Nonetheless, the index has survived an preliminary take a look at of its 50-day transferring average, at the moment 24,992. This space carefully matches vital assist, higher illustrated on the every day chart.

Slightly extra broadly, the Dow stays capped by its 200-day transferring average whereas the S&P 500 has successfully maintained a posture atop its 200-day.

True to latest kind, the Nasdaq Composite
COMP,
+1.09%
stays the strongest main benchmark.

Its prevailing pullback from document highs has been punctuated by a jagged retest of the breakout level (9,838). Major assist is best illustrated beneath.

Widening the view to 6 months provides perspective.

On this wider view, the Nasdaq has absorbed a bearish reversal from document highs. Recall final week’s headstone doji on the June peak, a bearish single-day sample resembling an inverted letter T.

The downturn has been punctuated by a jagged retest of the breakout level (9,838) amid to this point restricted technical harm.

Delving deeper, the ascending 50-day transferring average, at the moment 9,350, is carefully adopted by former hole assist (9,323). The Nasdaq’s intermediate-term bias stays bullish barring a violation.

Looking elsewhere, the Dow industrials’ backdrop stays weaker.

The prevailing downturn punctuates a failed take a look at of its 200-day transferring average, a stage defining the early-June island reversal.

Also recall that final week’s rally try stalled on the breakdown level — higher illustrated on the hourly chart — an space matching the February hole (25,752) and the May peak (25,758). Bearish worth motion.

On additional weak spot, acquainted inflection factors stay in play:

  • The June closing low (25,128).
  • The ascending 50-day transferring average, at the moment 24,992.
  • The absolute June low (24,843).

Tactically, an in depth beneath this space would mark a “lower low” — mixed with a violation of the 50-day transferring average — elevating the flag to an intermediate-term development shift.

The barely deeper breakout level doubtless marks last-ditch assist, an space carefully matching the June 2019 low (24,680) and the February 2020 low (24,681).

Meanwhile, the S&P 500 has weathered a downturn from main resistance.

Recall that final week’s excessive (3,154.9) matched the November peak (3,154) to punctuate the third latest failed retest.

The index has subsequently registered a jagged retest of the 200-day transferring average, at the moment 3,021, and the three,000 mark. Monday’s session low (2,999.7) matched the spherical quantity.

The greater image

Collectively, the U.S. benchmarks are closing out June, and the second quarter, amid uneven worth motion. The bigger-picture backdrop is just not one-size-fits-all.

On headline foundation, the Nasdaq Composite continues to outperform — staging a comparatively orderly pullback from document highs — whereas the Dow Jones Industrial Average has not acted nicely throughout the prior two weeks. The Dow’s bearish island reversal has been punctuated by consecutive failed exams of its 200-day transferring average and the breakdown level (25,750).

The S&P 500’s backdrop splits the distinction between the 2 benchmarks.

Moving to the small-caps, the iShares Russell 2000 ETF
IWM,
+0.90%
has pulled in from the 200-day transferring average.

To reiterate, trendline assist tracks the 50-day transferring average, at the moment 135.20, and is rising towards the breakout level (136.20).

Consecutive session lows final week — Wednesday (136.31) and Thursday (136.29) — successfully matched assist to punctuate a profitable retest. (Also see final Tuesday’s evaluation.)

Similarly, the SPDR S&P MidCap 400 ETF has pulled in from the 200-day transferring average.

Tactically, the June low carefully matches the breakout level and the ascending 50-day transferring average.

An eventual violation would punctuate a “lower low” elevating a warning flag.

Looking elsewhere, the SPDR Trust S&P 500
SPY,
+0.59%
has weathered a jagged take a look at of its 200-day transferring average, at the moment 301.70.

The late-June downturn punctuates a failed take a look at of hole resistance spanning from 312.15 to 313.00. The SPY has not closed atop this space since June 10.

Delving barely deeper, the ascending 50-day transferring average, at the moment 298.50, is more and more inside view.

Moving to the four-year view, the S&P 500 has whipsawed of late to punctuate a large bullish reversal.

Recall that the June low (2,965) registered barely atop main assist (2,954). This space stays a bull-bear inflection level.

Placing a finer level on the S&P 500, promoting stress has resurfaced close to main resistance (3,155) to conclude June and the second quarter.

Moreover, final week’s lukewarm rally try was punctuated by a failed take a look at of the breakdown level (3,090) from beneath.

A consolidation section is underway.

The subsequent query is the purpose at which “consolidation phase” morphs into technical harm ample to sign a development shift.

Tactically, the S&P’s 50-day transferring average, at the moment 2,989, is rising towards the 200-day transferring average. A golden cross — or bullish 50-day/200-day transferring average — will doubtless sign late subsequent week.

(The crossover is steadily a lagging sign. For occasion, the prior bearish crossover registered on March 30, after the 2020 low had been established.)

Delving deeper, the June low (2,965) has registered barely atop main assist (2,954) an space additionally detailed on the four-year chart.

As at all times, it’s not simply what the benchmarks do, it’s how they do it. But usually talking, the S&P 500’s intermediate- to longer-term bias stays bullish barring a violation of the two,954 assist.

Also see: Charting a bullish summer time begin, Nasdaq takes flight to document territory.

Tuesday’s Watch List

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

Drilling down additional, the SPDR S&P Homebuilders ETF
XHB,
+0.87%
is appearing nicely technically.

As illustrated, the group has asserted a June holding sample, digesting a rally atop the 200-day transferring average.

Delving barely deeper, the breakout level (40.50) carefully matches trendline assist. A sustained posture atop this space alerts a bullish bias.

Also discover the pending golden cross — or bullish 50-day/200-day transferring average crossover — signaling that the intermediate-term uptrend has overtaken the longer-term development.

Moving to particular names, Boeing Co.
BA,
-6.10%
is a Dow 30 element establishing nicely for the near-term.

Technically, the shares have rallied from the breakout level, rising amid reviews that the FAA and Boeing have began a collection of exams flights for the 737 MAX. The shares are decrease early Tuesday amid reviews that Norwegian Air Shuttle has canceled an order for 92 jets.

More broadly, the tandem strong-volume June rallies are technically constructive. The breakout level (166.00) marks a well-defined flooring, and the prevailing restoration try is unbroken barring a violation.

Dell Technologies, Inc.
DELL,
+1.00%
is a nicely positioned large-cap identify.

As illustrated, the shares have just lately gapped to seven-month highs, rising amid reviews that the corporate is contemplating a derivative of its stake in VMware, Inc.

The subsequent pullback has been comparably flat, positioning the shares to construct on the preliminary strong-volume spike.

Tactically, the breakout level (50.80) is carefully adopted by trendline assist and the 200-day transferring average, at the moment 47.40. The prevailing rally try is unbroken barring a violation.

Zebra Technologies Corp.
ZBRA,
+1.54%
is a large-cap developer of automatic-identification and data-capture options, together with barcode applied sciences.

Late final month, the shares knifed to document highs, clearing resistance matching the early-May peak. The subsequent pullback locations the shares at a horny entry close to the breakout level and 10.5% beneath the June peak.

Tactically, trendline assist carefully tracks the 50-day transferring average, and at the moment matches the breakout level, circa 243.00. A sustained posture greater alerts a bullish bias.

Initially profiled May 15, Halozyme Therapeutics, Inc.
HALO,
+4.60%
has edged barely greater and stays nicely positioned.

As illustrated, the shares have asserted a bull flag, digesting a strong-volume mid-June spike to document territory.

Tactically, the breakout level (24.40) is adopted by the ascending 50-day transferring average, a latest bull-bear inflection level. The prevailing uptrend is firmly-intact 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
Box, Inc. BOX June 29
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
Momenta Pharmaceuticals, Inc. MNTA 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
Arena Pharmaceuticals, Inc. ARNA June 18
Dollar Tree, Inc. DLTR June 17
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
VMware, Inc. VMW June 3
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
Beyond Meat, Inc. BYND May 21
Agios Pharmaceuticals, Inc. AGIO May 20
Cree, Inc. CREE May 20
Applied Materials, Inc. AMAT May 19
Fortinet, Inc. FTNT May 18
II-VI, Inc. IIVI May 18
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
iRobot Corp. IRBT 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
Snap, Inc. SNAP 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
Moderna, Inc. MRNA 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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