S&P 500 vies for technical breakout

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.

ETF	Symbol	Mon Close	Support	Resistance
iShares MSCI Brazil	EWZ	$51.08	$50.20	New High

Drilling down further, the iShares MSCI Brazil ETF
US:EWZ
 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.

Company	Symbol	Mon Close	Support	Resistance
Schlumberger Limited	SLB	$113.04	$110.80	$116.00

Profiled March 28, Schlumberger Limited
US:SLB
 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.

Company	Symbol	Mon Close	Support	Resistance
Newfield Exploration Co.	NFX	$44.48	$42.50	$44.60

Newfield Exploration Co.
US:NFX
 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.

Company	Symbol	Mon Close	Support	Resistance
Nextstar Broadcasting Group, Inc.	NXST	$48.96	$48.00	$53.70

Nextstar Broadcasting Group, Inc.
US:NXST
 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.

Company	Symbol	Mon Close	Support	Resistance
Pixelworks, Inc.	PXLW	$9.14	$8.90	$9.40

Initially profiled April 8, Pixelworks, Inc.
US:PXLW
 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.

Company	Symbol	Mon Close	Support	Resistance
Endeavor Silver Corp.	EXK	$6.15	$5.70	$6.30

Endeavor Silver Corp.
US:EXK
 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.

Company	Symbol	Date Profiled
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
Pebrobras	PBR	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
ConocoPhillips	COP	Apr. 28
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
Televisa	TV	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