Technically speaking, the bigger-picture backdrop has strengthened as the U.S. benchmarks continue to digest the February downdraft.

Though the recovery attempt remains fragile, each big three U.S. benchmark has rallied sharply from the February low, reaching firmer ground atop major resistance.

Before detailing the U.S. markets’ wider view, the S&P 500’s SPX, -1.11% hourly chart highlights the past two weeks.

As illustrated, the S&P has rallied to the range top, also edging above the 50-day moving average, currently 2,727.

Notable support broadly spans from 2,673 to 2,695, levels matching the 2017 close and 2017 peak. This area initially capped the S&P’s recovery attempt.

Similarly, the Dow Jones Industrial Average remains capped by the range top.

Near-term resistance (25,520) matches the weekly close immediately preceding the February downdraft.

Conversely, the 50-day moving average, currently 25,190, is followed by support matching the 2017 peak. Both areas are also illustrated on the daily chart.

Meanwhile, the Nasdaq Composite’s backdrop remains slightly stronger.

In its case, the index has placed distance atop the 50-day moving average, notching a two-week closing peak.

Additional overhead, circa 7,374, matches a breakdown point better illustrated below.

Widening the view to six months adds perspective.

On this wider view, the Nasdaq has reversed sharply from the February low, knifing atop trendline resistance.

The trendline closely tracks the 50-day moving average, currently 7,116, and pivots to support. A sustained posture higher supports a bullish intermediate-term bias.

Looking elsewhere, the Dow Jones Industrial Average has rallied from three-month lows.

In the process, the index is retesting its 50-day moving average, currently 25,190.

Conversely, recall that support broadly spans from about 24,720 to 24,875, levels matching the 2017 close and 2017 peak.

Meanwhile, the S&P 500 has reversed sharply from four-month lows.

Here again, the S&P has reached firmer ground atop the breakdown point, an area matching the 2017 peak (2,695).

Separately, the prevailing retest of the 50-day moving average, currently 2,727, remains underway.

The bigger picture

As detailed above, each big three U.S. benchmark has reached firmer technical ground, digesting the initially damaging February downdraft.

On a headline basis, each index has reclaimed its breakdown point — areas matching the 2017 peak — also rising to retest the 50-day moving average. Constructive price action, though sustainability remains an open question.

Moving to the small-caps, the iShares Russell 2000 ETF IWM, -0.26% has extended its rally from the 200-day moving average.

On further strength, the 50-day moving average (153.85) is followed by the breakdown point (155.50).

Similarly, the S&P MidCap 400 has rallied respectably from the 200-day moving average.

In its case, the 50-day moving average (348.20) more closely matches the breakdown point (349.20).

Meanwhile, the SPDR Trust S&P 500’s backdrop remains characteristically stronger.

As illustrated, the SPY has reclaimed its breakdown point, an area roughly matching the trendline. Support broadly spans from about 268.60 to 272.20, and its recovery attempt is intact barring a violation.

Conversely, the SPY has thus far topped fractionally under next resistance (275.45).

Summing up the backdrop

All told, the bigger-picture backdrop has strengthened. Each big three U.S. benchmark has reversed sharply from the February low, reclaiming significant resistance.

Perhaps as notably, the bullish price action has surfaced despite inflationary economic data, and amid still persistently rising Treasury yields, detailed last week.

To reiterate, the recovery attempt remains fragile based on today’s backdrop. The initial February downdraft registered as off-the-charts aggressive, by some measures, while the ensuing rally attempt remains comparably lukewarm.

Nonetheless, price action trumps other indicators, and the prevailing price action supports a bullish intermediate-term bias.

Tactically, former S&P 500 resistance pivots to well-defined support.

In this case, the specific area broadly spans from 2,672 to 2,695, areas matching the 2017 close and 2017peak. The S&P 500’s recovery attempt is intact barring a violation.

See also: Charting the market recovery attempt, S&P 500 hesitates at major resistance.

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.

Drilling down further, the SPDR Gold Trust GLD, +0.13% continues to act well technically amid persistent U.S. dollar sluggishness.

As illustrated, the shares are rising from a successful test of support amid a developing cup-and-handle pattern.

More broadly, major resistance matching the 2016 peak (131.15) is within view, an area illustrated on the five-year chart. The pending retest is worth tracking. An eventual breakout opens the path to much less-charted territory and potentially material follow-through.

Meanwhile, the U.S. dollar continues to digest the January downdraft.

Technically, the PowerShares U.S. Dollar Bullish ETF UUP, +0.12% is traversing a lower plateau, underpinned by major support matching the 2012 peak (23.14).

Last week’s low (23.12) closely matched support, punctuating a second successful retest.

Conversely, notable resistance matches the February peak (23.65). An eventual close higher, combined with follow-through atop the breakdown point (23.95), would place the dollar on firmer technical ground.

Against this backdrop, the Japanese yen has taken flight.

Specifically, the CurrencyShares Japanese Yen ETF FXY, +0.05% has knifed to 15-month highs, clearing well-defined resistance. Recent strength builds on the January rally atop trendline resistance and the 200-day moving average.

Tactically, the breakout point, circa 88.50, pivots to well-defined support.

Initially profiled Oct. 4, 2016, Netflix, Inc. NFLX, -0.05% has returned 171% and remains well positioned.

Technically, the shares have recently gapped to record territory, rising after the company’s fourth-quarter results. The ensuing pullback has been underpinned by the top of the gap, and the 20-day moving average.

More broadly, this is a continuation pattern, positioning the shares to build on the strong-volume January spike. A near-term target projects to the 298 area on follow-through.

Vipshop Holdings Limited VIPS, -0.35% is a large-cap China-based online discount retailer.

As illustrated, the shares have recently knifed to two-year highs, rising after the company’s strong quarterly results.

The ensuing pullback has been flat, fueled by decreased volume, placing the shares 4.9% under the February peak. First support matches the breakout point (17.75) and a posture higher supports a bullish bias.

Global Payments, Inc. GPN, -1.25% is a large-cap provider of electronic payment solutions.

Late last week, the shares knifed to record territory, edging atop resistance matching the January peak.

The rally originates from support closely matching the 50-day moving average. A near- to intermediate-term target projects to the 121 area on follow-through.

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.