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In focus: New highs in sight

Many of the major indexes have already made new post-2008 highs. This includes the Dow Jones Industrial Averag, the Russell 2000 Index, and the Value Line Index. The latter two are actually making all-time highs, having exceeded their 2007 highs.

Most people are not aware of just how strong the small-cap stocks have been. What has not made a new high (yet) is the Standard and Poors 500 Index (SPX 1,335, -0.85, -0.06%) . However, with these other indexes doing so, and with breadth being very strong of late, we expect to see new highs on SPX soon.

The previous highs on SPX — set in February — are at 1344. There is support at 1320 and higher. If those highs are broken, as we expect, then targets at 1380 and 1420 are activated for later this summer.

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