Banking

Charting a (bullish) holding pattern: S&P 500, Nasdaq nail major support

Technically speaking, the major U.S. benchmarks have asserted a December holding pattern, digesting early-month rallies to record territory.

In the process, the S&P 500 and Nasdaq Composite have maintained notable support matching the November peaks — S&P 3,646 and Nasdaq 12,244 — amid a still comfortably bullish intermediate-term backdrop.

Charting a (bullish) holding pattern: S&P 500, Nasdaq nail major support

Before detailing the U.S. markets’ wider view, the S&P 500’s
US:SPX
 hourly chart highlights the past two weeks.

As illustrated, the S&P is digesting the early-December break to record highs.

The prevailing range has been underpinned by major support matching the November peak (3,646), detailed previously.

Monday’s session low (3,645.8) matched support to punctuate a successful retest.

Charting a (bullish) holding pattern: S&P 500, Nasdaq nail major support

Meanwhile, the Dow Jones Industrial Average
US:DJIA
 is also traversing a jagged near-term range.

The index briefly tagged a record high Monday — by a narrow six-point margin — before reversing to close near session lows.

Tactically, the early-November peak (29,964) remains an inflection point, also detailed on the daily chart.

Charting a (bullish) holding pattern: S&P 500, Nasdaq nail major support

Against this backdrop, the Nasdaq Composite
US:COMP
has rallied from major support.

The specific area matches the November peak (12,244), detailed repeatedly.

Recall that Friday’s session low (12,246) registered nearby to punctuate a successful retest.

Charting a (bullish) holding pattern: S&P 500, Nasdaq nail major support

Widening the view to six months adds perspective.

On this wider view, the Nasdaq is digesting a decisive late-year breakout. The initial rally encompassed seven record closes across a nine-session span.

More immediately, the November peak (12,244) — detailed previously — has underpinned the prevailing range. Bullish price action.

Delving deeper, additional support holds in the 12,108-to-12,114 area, and is followed by the firmer breakout point (12,074).

Charting a (bullish) holding pattern: S&P 500, Nasdaq nail major support

Looking elsewhere, the Dow Jones Industrial Average is digesting a less decisive December breakout.

Tactically, the former breakout point (29,964) remains an inflection point, also detailed on the hourly chart.

Separately, the Dow has maintained a posture atop the 20-day moving average, currently 29,854, a widely-tracked near-term trending indicator.

More broadly, the relatively tight December range is a bullish continuation pattern. A near-term target continues to project to the 30,700 mark.

Charting a (bullish) holding pattern: S&P 500, Nasdaq nail major support

Meanwhile, the S&P 500 is also digesting a break to record highs.

To reiterate, the prevailing range has been underpinned by the breakout point (3,646) an area matching the November peak (3,645.99) and the Dec. 1 gap (3,645.87).

The bigger picture

Collectively, the major U.S. benchmarks continue to digest previously aggressive late-year rallies to record territory.

Still, the recent pullbacks have been relatively shallow, thus far inflicting limited damage in the broad sweep.

In fact, the S&P 500 and Nasdaq Composite have both maintained their first notable support matching the November peak — S&P 3,646 and Nasdaq 12,244. (See the hourly charts.)

Charting a (bullish) holding pattern: S&P 500, Nasdaq nail major support

Moving to the small-caps, the iShares Russell 2000 ETF is also digesting a December break to record territory.

The prevailing range marks the third consecutive flag-like pattern hinged to the initial early-November breakout.

Charting a (bullish) holding pattern: S&P 500, Nasdaq nail major support

Similarly, the SPDR S&P MidCap 400 ETF has asserted a higher plateau at record territory.

Here again, the prevailing range marks the third straight flag-like pattern.

Charting a (bullish) holding pattern: S&P 500, Nasdaq nail major support

Looking elsewhere, the SPDR Trust S&P 500 has sustained a less-decisive (but still bullish) late-year breakout.

The shallow mid-December pullback has been underpinned by the breakout point and the 20-day moving average.

Charting a (bullish) holding pattern: S&P 500, Nasdaq nail major support

Placing a finer point on the S&P 500, the index is consolidating a late-year rally to record highs.

The prevailing range has been underpinned by major support (3,646) on a closing basis.

Recall that the specific area matches the November peak (3,645.99) and the Dec. 1 gap (3,645.87).

Charting a (bullish) holding pattern: S&P 500, Nasdaq nail major support

More broadly, the pullback to first support punctuates a thus far tame December downturn.

Tactically, additional support holds in the 3,588-to-3,594 area, levels matching the September peak and late-November gap.

Delving deeper, the October peak (3,550) is followed by the ascending 50-day moving average, currently 3,529.

Against this backdrop, the S&P 500’s late-year consolidation phase — a sideways chopping around period — remains underway. The index is digesting a rally to record territory.

But broadly speaking, the prevailing backdrop supports a bullish intermediate-term bias barring a violation of the areas detailed above. Last-ditch support currently spans from about 3,530 to 3,550.

Also see: Charting a slow-motion breakout: S&P 500 challenges 3,700 mark.

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.

Charting a (bullish) holding pattern: S&P 500, Nasdaq nail major support

Drilling down further, the iShares Nasdaq Biotechnology ETF
US:IBB
 is acting well technically.

Technically, the group has knifed to all-time highs, rising from a December flag-like pattern.

More broadly, the prevailing upturn punctuates a double bottom — defined by the September and November lows — levels roughly matching the 200-day moving average. An intermediate-term target projects to the 162 area.

Conversely, gap support (151.00) is followed by the former breakout point (146.50). A posture higher signals a firmly-bullish bias.

Charting a (bullish) holding pattern: S&P 500, Nasdaq nail major support

Netflix, Inc.
US:NFLX
 is a large-cap name setting up well for the near-term.

As illustrated, the shares have rallied to the range top, rising to tag a nominal seven-week high.

The upturn punctuates a relatively tight range — and has been fueled by a volume uptick — laying the groundwork for a potentially more decisive breakout. Tactically, an intermediate-term target projects to the 574 area, closely matching the record peak (575.37).

More broadly, the shares are well positioned on the four-year chart, rising from a continuation pattern hinged to the steep early-2020 breakout.

Charting a (bullish) holding pattern: S&P 500, Nasdaq nail major support

Xilinx, Inc.
US:XLNX
 is a well positioned large-cap semiconductor name.

Late last month, the shares reached record highs, knifing from the November range top.

The subsequent tight range signals muted selling pressure, positioning the shares to extend the uptrend. Tactically, the 158 area marks a near-term target.

Conversely, the 20-day moving average is followed by the breakout point, circa 136.50. The prevailing rally attempt is intact barring a violation.

Charting a (bullish) holding pattern: S&P 500, Nasdaq nail major support

Toyota Motor Co.
US:TM
 is a large-cap Japan-based name taking flight. (Yield = 2.8%.)

As illustrated, the shares have spiked to record territory, rising amid optimism over the pending delivery of its new heavy-duty fuel cell trucks.

Though near-term extended, the strong-volume spike is longer-term bullish, and the shares are attractive on a pullback. Tactically, gap support (149.05) is followed by the breakout point (144.60).

More broadly, the shares are well positioned on the 10-year chart, clearing major resistance matching the 2015 peak.

Charting a (bullish) holding pattern: S&P 500, Nasdaq nail major support

Finally, Williams-Sonoma, Inc.
US:WSM
 is a well positioned large-cap retailer.

Late last month, the shares gapped to record territory, rising after the company’s strong third-quarter results. The subsequent pullback places the shares 7.1% under the November peak.

Tactically, the bottom of the gap (101.68) closely matches the 50-day moving average, currently 101.70. The prevailing uptrend is firmly-intact barring a violation.

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* (Click symbol for chart.)

Date Profiled

SDPR S&P Regional Banking ETF

KRE

Dec. 14

Atlassian Corp.

TEAM

Dec. 14

Etsy, Inc.

ETSY

Dec. 14

Surface Oncology, Inc.

SURF

Dec. 14

Autodesk, Inc.

ADSK

Dec. 9

Monster Beverage Corp.

MNST

Dec. 9

Cimarex Energy Co.

XEC

Dec. 9

Plug Power, Inc.

PLUG

Dec. 9

F5 Networks, Inc.

FFIV

Dec. 8

Emerson Electric Co.

EMR

Dec. 8

Patterson Companies, Inc.

PDCO

Dec. 8

Zscaler, Inc.

ZS

Dec. 7

Fortinet, Inc.

FTNT

Dec. 7

Kulicke and Soffa Industries, Inc.

KLIC

Dec. 7

Honeywell International, Inc.

HON

Dec. 7

Dillard’s, Inc.

DDS

Dec. 4

Caleres, Inc.

CAL

Dec. 4

Spotify Technology S.A.

SPOT

Dec. 3

Align Technology, Inc.

ALGN

Dec. 3

Valero Energy Corp.

VLO

Dec. 3

Analog Devices, Inc.

ADI

Dec. 2

Cirrus Logic, Inc.

CRUS

Dec. 1

Sonos, Inc.

SONO

Dec. 1

Dollar Tree, Inc.

DLTR

Dec. 1

Nuance Communications, Inc.

NUAN

Nov. 30

Northern Trust Corp.

NTRS

Nov. 30

American Airlines Group, Inc.

AAL

Nov. 30

Microchip Technology, Inc.

MCHP

Nov. 24

Coca-Cola Co.

KO

Nov. 24

Zillow Group, Inc.

ZG

Nov. 23

Yeti Holdings, Inc.

YETI

Nov. 23

Carvana Co.

CVNA

Nov. 23

Palo Alto Networks, Inc.

PANW

Nov. 20

Bank of America Corp.

BAC

Nov. 20

Eaton Corp.

ETN

Nov. 20

SPDR S&P Oil & Gas Exploration and Production ETF

XOP

Nov. 20

MetLife, Inc.

MET

Nov. 19

Hilton Worldwide Holdings, Inc.

HLT

Nov. 19

American Express Co.

AXP

Nov. 18

Kohl’s Corp.

KSS

Nov. 18

FleetCor Technologies

FLT

Nov. 18

Applied Materials, Inc.

AMAT

Nov. 17

Delta Air Lines, Inc.

DAL

Nov. 17

Consumer Staples Select Sector SPDR

XLP

Nov. 17

Ross Stores, Inc.

ROST

Nov. 16

Boeing Co.

BA

Nov. 16

RingCentral, Inc.

RNG

Nov. 13

Regions Financial Corp.

RF

Nov. 13

iShares Europe ETF

IEV

Nov. 13

Flex, Inc.

FLEX

Nov. 9

Snap, Inc.

SNAP

Nov. 9

Norfolk Southern Corp.

NSC

Nov. 9

Materials Select Sector SPDR

XLB

Nov. 6

Communications Services Select Sector SPDR

XLC

Nov. 5

Health Care Select Sector SPDR

XLV

Nov. 5

Alphabet, Inc.

GOOGL

Nov. 5

Uber Technologies, Inc.

UBER

Nov. 5

Keysight Technologies, Inc.

KEYS

Nov. 4

Harley-Davidson, Inc.

HOG

Nov. 4

Garmin, Ltd.

GRMN

Nov. 4

Pinterest, Inc.

PINS

Nov. 3

Sony Corp.

SNE

Nov. 3

8×8, Inc.

EGHT

Nov. 3

Exact Sciences Corp.

EXAS

Nov. 2

Universal Display Corp.

OLED

Nov. 2

Dentsply Sirona, Inc.

XRAY

Oct. 27

Maxim Integrated Products, Inc.

MXIM

Oct. 21

The Travelers Companies, Inc.

TRV

Oct. 21

Micron Technology, Inc.

MU

Oct. 20

Vulcan Materials Co.

VMC

Oct. 19

Utilities Select Sector SPDR

XLU

Oct. 19

ON Semiconductor Corp.

ON

Oct. 16

Ford Motor Co.

F

Oct. 15

Texas Instruments, Inc.

TXN

Oct. 15

First Solar, Inc.

FSLR

Oct. 13

Nevro Corp.

NVRO

Oct. 12

Teradyne, Inc.

TER

Oct. 12

SPDR S&P Homebuilders ETF

XHB

Oct. 9

Shake Shack, Inc.

SHAK

Oct. 9

SPDR S&P Biotech ETF

XBI

Oct. 8

Twilio, Inc.

TWLO

Oct. 8

Cloudflare, Inc.

NET

Oct. 7

Ceridian HCM Holding, Inc.

CDAY

Oct. 7

Motorola Solutions, Inc.

MSI

Oct. 6

RSailPoint Technology Holdings, Inc.

SAIL

Oct. 1

Martin Marietta Materials, Inc.

MLM

Sept. 30

Abercrombie & Fitch Co.

ANF

Sept. 29

Blueprint Medicines Co.

BPMC

Sept. 28

Zendesk, Inc.

ZEN

Sept. 23

Scientific Games Corp.

SGMS

Sept. 23

Crocs, Inc.

CROX

Sept. 14

Five Below, Inc.

FIVE

Sept. 10

Eastman Chemical Co.

EMN

Sept. 10

International Paper Co.

IP

Sept. 3

Anaplan, Inc.

PLAN

Sept. 2

Celanese Corp.

CE

Aug. 26

Westlake Chemical Corp.

WLK

Aug. 25

Deere & Co.

DE

Aug. 24

Expedia Group, Inc.

EXPE

Aug. 24

Johnson Controls International

JCI

Aug. 21

Canadian Solar, Inc.

CSIQ

Aug. 20

General Motors Co.

GM

Aug. 20

Starbucks Corp.

SBUX

Aug. 18

Builders FirstSource, Inc.

BLDR

Aug. 18

Steel Dynamics, Inc.

STLD

Aug. 17

Brinker International, Inc.

EAT

Aug. 13

Enphase Energy, Inc.

ENPH

Aug. 13

Nucor Corp.

NUE

Aug. 11

Freeport McMoRan, Inc.

FCX

Aug. 10

Natera, Inc.

NTRA

Aug. 10

Industrial Select Sector SPDR

XLI

Aug. 6

Penn National Gaming, Inc.

PENN

July 30

Procter & Gamble Co.

PG

July 29

SPDR S&P Metals & Mining ETF

XME

July 28

iShares MSCI South Korea ETF

EWY

July 28

Advanced Micro Devices, Inc.

AMD

July 23

Materials Select Sector SPDR

XLB

July 20

Caterpillar, Inc.

CAT

July 20

Roku, Inc.

ROKU

July 16

Cognizant Technology Solutions, Inc.

CTSH

July 16

Costco Wholesale Corp.

COST

July 15

Consumer Discretionary Select Sector SPDR

XLY

July 13

SunPower Corp.

SPWR

July 13

Walmart, Inc.

WMT

July 8

Danaher Corp.

DHR

June 24

Fiverr International, Ltd.

FVRR

June 19

HubSpot, Inc.

HUBS

June 8

Square, Inc.

SQ

June 8

FedEx Corp.

FDX

June 3

SPDR S&P Retail ETF

XRT

June 3

iShares MSCI Japan ETF

EWJ

May 29

Synopsis, Inc.

SNPS

May 27

Agilent Technologies, Inc.

A

May 15

Qualcomm, Inc.

QCOM

May 12

Facebook, Inc.

FB

May 7

ServiceNow, Inc.

NOW

Apr. 27

Five9, Inc.

FIVN

Apr. 24

Chewy, Inc.

CHWY

Apr. 24

Tesla, Inc.

TSLA

Apr. 23

VanEck Vectors Semiconductor ETF

SMH

Apr. 17

Okta, Inc.

OKTA

Apr. 16

Target Corp.

TGT

Apr. 16

Invesco QQQ Trust

QQQ

Apr. 14

Apple, Inc.

AAPL

Mar. 27

Nvidia Corp.

NVDA

Mar. 27

iShares MSCI Emerging Markets ETF

EEM

Mar. 19

Microsoft Corp.

MSFT

Feb. 22

* Click each symbol for current chart.

 

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