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
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
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
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
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
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
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.
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.
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.
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.
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|
|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.|