By Lawrence G. McMillan
The stock market has virtually alternated strong up and down days of late, without much net change. This has created a trading range, within which we’ve seen a good deal of improvement from several of our technical indicators. Even so, the market must confirm these indicators’ buy signals with an upside breakout. Failure to do so would essentially negate those signals.
The S&P 500 Index ($SPX) has bumped up against the 1330-1335 several times over the past few weeks (including today). It has not been able to grind through that area, so it is well-defined resistance. Actually, there is resistance as high as 1340, if one considers that level, which had previously been support. A clear close above 1340 would be very bullish.
On the downside, in recent days the market has bounced off the 1305-1307 area several times. That is near-term support. If it should give way, then the early June lows at 1280-1290 would once again be in play.
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