CINCINNATI (MarketWatch) — Despite recent volatility, the major U.S. benchmarks are rattling the cage on uncharted territory.
Most notably, the S&P 500 Index is challenging its all-time high — S&P 1,985.59 — and a break from this area would confirm its primary uptrend. The charts below add color:
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 is traversing its range.
The range top — the July peak of 1,985 — marks the S&P’s all-time high, and this week’s upturn positions the index for a potential breakout.
Meanwhile, the Dow industrials’ near-term backdrop is stronger.
In its case, the blue-chip benchmark has maintained support at its former breakout point of 16,970, an area better illustrated on the daily chart.
And the Nasdaq Composite’s near-term view remains jagged, but constructive.
Recall that the index bottomed last week at 4,352, matching a significant technical floor at the July low.
Widening the view to six months adds perspective.
On this wider view, the Nasdaq has survived its second test of the breakout point — support at the July low — and its path of least resistance points firmly higher barring a violation of this area.
Similarly, the Dow Jones Industrial Average has maintained support at its former breakout point of 16,970.
Consider that last week’s “Russia-induced” low held at 16,966, and the Dow bottomed Monday at 16,974. Bullish price action.
And the S&P 500’s wider view rounds out the major benchmarks.
As detailed previously, the July lows now rest at 1,952 and 1,955, and this area marks increasingly significant support.
The bigger picture
Technically speaking, the major U.S. benchmarks have absorbed last week’s geopolitically-driven volatility.
In fact, the summer price action remains distinctly technical.
Returning to the Nasdaq, it’s nailed support at the July low of 4,351.
With this week’s upturn, two hurdles stand out:
- Initial resistance at its two-week range top, around 4,450.
- Resistance at the Nasdaq’s 14-year high of 4,485.93.
Similarly, the Dow Jones Industrial Average has maintained its former breakout point of 16,970.
Looking ahead, technical overhead falls out as follows:
- Dow resistance at its all-time closing high of 17,138.
- Resistance at the Dow’s absolute all-time high of 17,151.
And the S&P 500 Index faces the U.S. markets’ headline technical test. Specifically:
- The S&P’s all-time closing high rests at 1,985.44.
- The S&P’s absolute all-time highs holds at 1,985.59.
Against this backdrop, the S&P has established a well-defined two-week range. The range encompasses last week’s “Russia-induced” whipsaw as well as the markets’ response to the early second-quarter earnings reports. And technically, trading ranges are more frequently exited in the direction in which they were entered. In this case, that would point to an eventual break higher.
So all told, the bigger-picture technicals remain bullish. Each benchmark has maintained well-defined support, and remains within striking distance of less-charted territory.
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.
|iShares MSCI Brazil||EWZ||$51.08||$50.20||New High|
Drilling down further, the iShares MSCI Brazil ETF
is acting well technically. (Yield = 3.2%.)
As illustrated, the shares have knifed from a bullish cup and handle defined by the June and July lows.
Moreover, recent strength has been driven by a sustained volume increase, improving the chances of incremental follow-through. First support now rests at the breakout point, just above 50.
Profiled March 28, Schlumberger Limited
has returned 15.9% and remains well positioned.
The shares initially spiked four weeks ago, rising to all-time highs after management issued stronger-than-expected long-term profit guidance.
By comparison, the ensuing pullback has been orderly, placing the shares at a high risk/reward entry near the breakout point, and 5% under the July peak. Schlumberger is also well positioned on the monthly chart.
|Newfield Exploration Co.||NFX||$44.48||$42.50||$44.60|
Newfield Exploration Co.
is a large-cap oil and gas name positioned to rise.
Late last week, the shares gapped sharply higher, rising on management’s upwardly revised full-year production outlook.
The subsequent selling pressure has been limited — punctuated by lighter volume — and its tight three-session range positions the shares for a potential breakout.
|Nextstar Broadcasting Group, Inc.||NXST||$48.96||$48.00||$53.70|
Nextstar Broadcasting Group, Inc.
is a well positioned mid-cap name.
Technically speaking, the shares have recently rallied to six-month highs, rising after the U.S. Supreme Court ruled that online TV provider Aereo was illegal.
The July pullback has been comparably flat, placing the shares at an attractive entry near the breakout point.
Initially profiled April 8, Pixelworks, Inc.
has returned 65.8% and remains well positioned.
Earlier this month, the shares knifed sharply higher, rising on speculation that the company is working with Apple, Inc. to develop an upcoming TV.
Since then, it’s challenged resistance at the March peak, and this week’s upturn positions the shares for a potential breakout.
|Endeavor Silver Corp.||EXK||$6.15||$5.70||$6.30|
Endeavor Silver Corp.
is a small-cap miner positioned to rise.
As illustrated, the shares are challenging well-defined resistance at 52-week highs.
Moreover, recent strength has been driven by a sustained volume increase, improving the chances of an eventual breakout. The shares are also well positioned on the weekly chart.
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.
|Embraer SA||ERJ||July 21|
|RF Micro Devices, Inc.||RFMD||July 21|
|Spirit Airlines, Inc.||SAVE||July 21|
|Amazon.com, Inc.||AMZN||July 18|
|Sinclair Broadcast Group, Inc.||SBGI||July 18|
|VCA, Inc.||WOOF||July 18|
|Stillwater Mining Co.||SWC||July 18|
|InvenSense, Inc.||INVN||July 17|
|Freeport McMoRan Copper & Gold||FCX||July 17|
|Xilinx, Inc.||XLNX||July 17|
|United Parcel Service, Inc.||UPS||July 16|
|Noble Energy, Inc.||NBL||July 16|
|Fiserv, Inc.||FISV||July 16|
|Bank of New York Mellon Corp.||BK||July 16|
|Discover Financial Services||DFS||July 16|
|FMC Technologies, Inc.||FTI||July 15|
|eBay Inc.||EBAY||July 15|
|Rambus, Inc.||RMBS||July 15|
|Glu Mobile, Inc.||GLUU||July 15|
|Western Digital Corp.||WDC||July 14|
|Pixelworks, Inc.||PXLW||July 14|
|XL Group, plc||XL||July 14|
|Companhia Siderurgica Nacional||SID||July 14|
|iShares Silver Trust||SLV||July 11|
|Southern Copper Corp.||SCCO||July 11|
|Digital Realty Trust, Inc.||DLR||July 11|
|Weyerhaeuser Co.||WY||July 11|
|BioDelivery Sciences International||BDSI||July 11|
|Archer Daniels Midland Co.||ADM||July 10|
|Spansion, Inc.||CODE||July 10|
|Nuance Communications, Inc.||NUAN||July 10|
|Pan American Silver Corp.||PAAS||July 10|
|KLA-Tencor Corp.||KLAC||July 9|
|Agnico Eagle Mines||AEM||July 9|
|Nabors Industries, Ltd.||NBR||July 9|
|Greenbrier Companies, Inc.||GBX||July 9|
|Abraxas Petroleum Corp.||AXAS||July 9|
|Market Vectors Semiconductor ETF||SMH||July 8|
|International Business Machines||IBM||July 8|
|Gilead Sciences, Inc.||GILD||July 8|
|Bitauto Holdings Limited||BITA||July 8|
|Toyota Motor Corp.||TM||July 7|
|Expedia, Inc.||EXPE||July 7|
|Kodiak Oil & Gas Corp.||KOG||July 7|
|Baidu, Inc.||BIDU||July 2|
|El Paso Pipeline Partners, L.P.||EPB||July 2|
|Celgene Corp.||CELG||July 1|
|Royal Gold, Inc.||RGLD||July 1|
|Freeport-McMoRan Copper & Gold, Inc.||FCX||June 30|
|Cheniere Energy, Inc.||LNG||June 30|
|Microsoft Corp.||MSFT||June 30|
|iShares MSCI Japan ETF||EWJ||June 27|
|SolarCity Corp.||SCTY||June 27|
|Sempra Energy||SRE||June 27|
|Akorn, Inc.||AKRX||June 27|
|Health Care Select Sector SPDR||XLV||June 26|
|National Oilwell Varco, Inc.||NOV||June 26|
|FedEx Corp.||FDX||June 26|
|Eagle Materials, Inc.||EXP||June 26|
|AK Steel Holding Corp.||AKS||June 26|
|Kroger Co.||KR||June 25|
|Cirrus Logic, Inc.||CRUS||June 25|
|Tesla Motors, Inc.||TSLA||June 24|
|Eaton Corp.||ETN||June 24|
|Illumina, Inc.||ILMN||June 23|
|Salix Pharmaceuticals, Ltd.||SLXP||June 23|
|Microsemi Corp.||MSCC||June 23|
|Aspen Technology, Inc.||AZPN||June 23|
|SPDR Gold Trust||GLD||June 20|
|Noble Energy, Inc.||NBL||June 20|
|SunPower Corp.||SPWR||June 20|
|Monsanto Co.||MON||June 20|
|Coca-Cola Co.||KO||June 19|
|AutoDesk, Inc.||ADSK||June 19|
|Super Micro Computer, Inc.||SMCI||June 18|
|NetEase, Inc.||NTES||June 18|
|Jabil Circuit, Inc.||JBL||June 18|
|Green Plains, Inc.||GPRE||June 17|
|Chevron Corp.||CVX||June 17|
|Weatherford International, Ltd.||WFT||June 16|
|Health Net, Inc.||HNT||June 13|
|Ctrip.com International, Ltd.||CTRP||June 11|
|iShares MSCI Emerging Markets ETF||EEM||June 10|
|Joy Global, Inc.||JOY||June 10|
|CSX Corp.||CSX||June 9|
|Halcon Resources Corp.||HK||June 9|
|Amazon.com, Inc.||AMZN||June 6|
|Financial Select Sector SPDR||XLF||June 5|
|Applied Materials, Inc.||AMAT||June 4|
|Williams-Sonoma, Inc.||WSM||June 4|
|Intel Corp.||INTC||June 3|
|American Airlines Group, Inc.||AAL||June 3|
|iShares MSCI Taiwan ETF||EWT||June 2|
|Zebra Technologies Corp.||ZBRA||June 2|
|Dow Chemical Co.||DOW||May 30|
|United Microelectronics Corp.||UMC||May 30|
|Dillard’s, Inc.||DDS||May 28|
|Expedia, Inc.||EXPE||May 28|
|Sanchez Energy Corp.||SN||May 28|
|Consumer Discretionary Select Sector SPDR||XLY||May 27|
|Nordstrom, Inc.||JWN||May 27|
|Google, Inc.||GOOGL||May 21|
|SBA Communications Corp.||SBAC||May 21|
|Cisco Systems, Inc.||CSCO||May 20|
|Kulicke & Soffa Industries, Inc.||KLIC||May 20|
|Pernix Therapeutics Holdings, Inc.||PTX||May 20|
|Humana, Inc.||HUM||May 19|
|Arris Group, Inc.||ARRS||May 19|
|Union Pacific Corp.||UNP||May 19|
|Vipshop Holdings Limited||VIPS||May 15|
|Verizon Communications, Inc.||VZ||May 15|
|HDFC Bank Ltd.||HDB||May 15|
|Avago Technologies, Ltd.||AVGO||May 14|
|Technology Select Sector SPDR||XLK||May 13|
|Devon Energy Corp.||DVN||May 13|
|iShares India 50 ETF||INDY||May 12|
|Lam Research Corp.||LRCX||May 12|
|Anadarko Petroleum Corp.||APC||May 12|
|Exxon Mobil Corp.||XOM||May 7|
|Fiserv, Inc.||FISV||May 7|
|Centene Corp.||CNC||May 7|
|Level 3 Communications, Inc.||LVLT||May 6|
|Canadian Pacific Railway, Ltd.||CP||May 5|
|American Tower Corp.||AMT||May 5|
|3M Co.||MMM||May 2|
|Canadian National Railway Co.||CNI||May 1|
|Suncor Energy, Inc.||SU||May 1|
|Pepsico, Inc.||PEP||Apr. 29|
|Greenbrier Companies, Inc.||GBX||Apr. 28|
|Cirrus Logic, Inc.||CRUS||Apr. 28|
|Skyworks Solutions, Inc.||SWKS||Apr. 25|
|Apple, Inc.||AAPL||Apr. 24|
|iShares Nasdaq Biotechnology ETF||IBB||Apr. 23|
|iShares Transportation Average ETF||IYT||Apr. 22|
|Advanced Semiconductor Engineering||ASX||Apr. 21|
|Consumer Staples Select Sector SPDR||XLP||Apr. 17|
|Oasis Petroleum, Inc.||OAS||Apr. 17|
|Patterson-UTI Energy, Inc.||PTEN||Apr. 16|
|EOG Resources, Inc.||EOG||Apr. 16|
|iShares MSCI Brazil ETF||EWZ||Apr. 15|
|Market Vectors Oil Services ETF||OIH||Apr. 9|
|FMC Technologies, Inc.||FTI||Apr. 9|
|Pixelworks, Inc.||PXLW||Apr. 8|
|Intel Corp.||INTC||Apr. 4|
|Concho Resources, Inc.||CXO||Apr. 3|
|Baker Hughes, Inc.||BHI||Apr. 3|
|Alcoa, Inc.||AA||Apr. 3|
|iShares MSCI Emerging Markets ETF||EEM||Apr. 2|
|Energy Select Sector SPDR||XLE||Mar. 31|
|Whiting Petroleum Corp.||WLL||Mar. 31|
|Continental Resources, Inc.||CLR||Mar. 31|
|Golar LNG, Ltd.||GLNG||Mar. 31|
|Schlumberger, Ltd.||SLB||Mar. 28|
|WellPoint, Inc.||WLP||Mar. 27|
|Microsoft Corp.||MSFT||Mar. 25|
|iShares U.S. Telecommunications ETF||IYZ||Mar. 24|
|Zillow, Inc.||Z||Mar. 24|
|U.S. Silica Holdings, Inc.||SLCA||Mar. 19|
|Cimarex Energy Co.||XEC||Mar. 19|
|Industrial Select Sector SPDR||XLI||Mar. 10|
|iShares Transportation Average||IYT||Mar. 7|
|OmniVision Technologies, Inc.||OVTI||Mar. 7|
|iShares U.S. Real Estate ETF||IYR||Mar. 5|
|Consumer Staples Select Sector SPDR||XLP||Mar. 3|
|Materials Select Sector SPDR||XLB||Feb. 28|
|Utilities Select Sector SPDR||XLU||Feb. 24|
|Diamondback Energy, Inc.||FANG||Feb. 19|
|Market Vectors Semiconductor ETF||SMH||Feb. 18|
|NXP Semiconductors NV||NXPI||Feb. 10|
|Magna International, Inc.||MGA||Jan. 21|
|Energy Transfer Equity, L.P.||ETE||Dec. 9|
|Hewlett-Packard Co.||HPQ||Dec. 5|
|Southwest Airlines Co.||LUV||Oct. 10|
|PolyOne Corp.||POL||Oct. 1|
|Vipshop Holdings Limited||VIPS||Sept. 3|