CINCINNATI (MarketWatch) — Despite a tenuous early-year start, the U.S. markets’ 2015 rally continues to broaden.

Against this backdrop, market sentiment, as measured by the Volatility Index, has yet to reach complacent extremes, suggesting that the bull market has room to run.

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 has sustained its latest break to record territory.

First support now rests at its breakout point — just above the 2,100 mark — and is followed by a deeper floor at last year’s closing high of 2,090.

Meanwhile, the Dow industrials’ near-term backdrop remains technical.

Consider that the index bottomed Monday at 18,054, matching first support at its breakout point.

The 2014 closing high remains the Dow’s first notable support, and is followed by a deeper floor around 17,950.

And the Nasdaq Composite is refusing to pull in.

Near-term support remains poorly-defined, though the 4,929 area marks a potential floor, and is followed by additional support just above the 4,900 mark.

Widening the view to six months adds perspective.

On this wider view, the Nasdaq has taken flight, breaking decisively to nearly 15-year highs. Two overhead targets stand out:

The Nasdaq’s all-time closing high of 5,048.62.

The Nasdaq’s absolute record peak of 5,132.52.

Both levels were established on March 10, 2000.

Though near-term extended, and due to consolidate, the Nasdaq’s straightline February breakout is longer-term bullish. Its first significant support rests at the 4,815 breakout point.

Moving to the Dow, the blue-chip benchmark has rallied to all-time highs.

Again, initial support now rests at the 18,053 breakout point — better illustrated on the hourly chart — and is followed by its former range top, around 17,950.

And the S&P 500 has extended its break to record territory.

First support now spans from 2,090 to 2,093 (the 2014 peaks), and is followed by a more important floor at its former breakout point of 2,064.

The bigger picture

As detailed above, each major U.S. benchmark has rallied to less-charted territory. The Nasdaq Composite has reached nearly 15-year highs, while the Dow industrials and the S&P 500 have edged to all-time highs.

Beyond the headline benchmarks, consider the following:

Returning to the small-caps, the iShares Russell 2000 ETF IWM, -0.26% has extended to record territory on modestly increased volume. The IWM’s breakout point, around 121, now marks first support.

Meanwhile, the SPDR S&P MidCap 400 MDY, -1.07% has broken more decisively to all-time highs. Consider that the MDY initially reached record territory on Feb. 5, and has persistently trended higher.

Against this backdrop, market sentiment, as measured by the Volatility Index VIX, -2.38% , continues to support the bull case.

As always, the VIX is a contrarian indicator: Extreme VIX highs correspond with S&P 500 lows, and vice versa.

To be sure, the VIX has pulled in from the early 2015 peaks, and no longer holds screamingly-bullish territory. Still, the Volatility Index is merely retesting its 200-day moving average, an area that punctuated the late-December and mid-February lows.

With the S&P 500 Index reaching all-time highs, the VIX “should” be registering multi-month lows, and for the bear case to strengthen, the VIX would ideally be pressing its six-month range bottom.

That’s not happening, suggesting that investor sentiment has yet to reach complacent extremes.

Beyond the VIX, the U.S. markets’ relatively broadly based rally speaks for itself. Each benchmark faces limited immediate resistance.

As detailed previously, initial S&P support spans from 2,090 to 2,093, and is followed by a more important floor at its former breakout point of 2,064. The S&P 500’s technical bias points firmly higher barring a violation of these areas.

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 Technology Select Sector SPDR XLK, -1.72% is acting well technically.



Earlier this month, the group rallied to 14-year highs, clearing resistance at the November peak. Underlying the upturn, its relative strength index (not illustrated) has notched its best levels since November, improving the chances of incremental follow-through.

Initial support now rests at the breakout point, around 42.50, and is followed by a deeper floor at the 50-day moving average. The group’s technical bias points higher barring a violation of these areas.

Meanwhile, the iShares Nasdaq Biotechnology ETF IBB, +0.50% has rallied to all-time highs.

Though near-term extended, the group’s strong-volume rally is longer-term bullish, and a pullback toward the breakout point would offer an attractive entry. Also notice that the ascending 50-day moving average has marked a bull-bear inflection point.

Pfizer, Inc. PFE, -0.51% is a well positioned large-cap name. (Yield = 3.2%.)

As illustrated, the shares have recently knifed to 10-year highs, rising after the company’s $16 billion acquisition of Hospira, Inc.

The ensuing pullback has been flat — punctuated by decreased volume — positioning the shares to build on the initial spike. Pfizer is also well positioned on the weekly chart, and its technical bias points higher barring a violation of the breakout point.

Public since August 2013, Intrexon Corp. US:XON is a mid-cap biotech name positioned to rise.

Technically, the shares have rallied to record territory, clearing resistance at the January peak. Recent strength has been driven by a sustained volume increase.

It’s subsequently maintained support at the breakout point, and the risk/reward can be favorable from current levels with a stop in this area.

Initially profiled Jan. 7, Halozyme Therapeutics, Inc. HALO, -1.03% remains well positioned.

As illustrated, the shares have established a bullish flag, underpinned by the 20-day moving average and support at the late-January low.

Its orderly six-week range points to limited selling pressure, positioning the shares to build on the January breakout.

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.