The fact that $SPX and the Dow ($DJX) are out-performing just about everything in the universe is well-known, but there doesn't seem to be any letup in the wide divergence between market internals and $SPX. If $SPX falls back below support and closes below 4690, that will remove the "bullish" status from the $SPX chart. There would still be support at 4500, which is the lower end of that trading range.
The fact that $SPX has made new closing and intraday highs is bullish. As for the $SPX chart, there should be support at the old breakout level near 4700, although that has not been tested yet. If $SPX should fall back below there, it would be back in its old trading range, with support at 4500. However, a pullback of that magnitude while not necessarily setting off bear market alarms would remove the current "bullish" status from the $SPX chart.
Stocks plunged over 90 points at one time on Monday, December 20th. However, that produced enough of an oversold condition once again, that buyers stepped in and have taken $SPX all the way back to the top of its trading range, at 4700. The lower end of the trading range is 4500 (see Figure 1), although there is also support at this week's lows, 4530. $SPX has tried numerous times to break out over 4705 and hold those gains but has been unable to do so. But market internals have improved somewhat, so maybe this time it will happen.
Over the last week, new 52-week Lows have been dominating New 52-week Highs, across all three data sets: NYSE, NASDAQ, and “stocks only.” The day after $SPX rallied to its all-time high close at 4712, there were over900 new 52-week lows in optionable stocks, and over 600 in NASDAQ. So, with $SPX just off its highs, there were hundreds of stocks making new 52-week lows. That is a stark picture of just how much negative divergence there is in this market. Put-call ratios and market breadth also can attest to this.
$SPX is in a very volatile trading range, as $SPX has traversed the 4600 to 4700 area several times. Each time it declines, oversold conditions arise, spurring a rally. But then it fails at the top of the range. 4600 is the nearest support, with support at 4500 and 4300 below that.