By Lawrence G. McMillan
The market, as measured by the Standard & Poors 500 Index, finally broke out of the tight 1190-1220 range this week — to the upside. Since then there have been two attempts to pull back, but they have met support near 1220, and so that is now a confirmed support area.
The chart of the S&P 500 now looks poised to assault major resistance at 1260, which repelled the current advance on Monday. That may be more difficult to overcome, but given the generally (although not uniformly) positive backdrop, it should be able to do so. The 200-day moving average is at about 1270, and a rise above there would certainly draw money into the stock market. Also, resistance levels exist at 1310 and then at the yearly highs (1350-1360).
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