By Lawrence G. McMillan
The S&P 500 index has regrouped and is pushing once again toward new all-time highs. It had attempted to break out a couple of weeks ago, but the attempt was weak and resistance held.
However, that was only a temporary setback, as the index /zigman2/quotes/210599714/realtime SPX +0.18% pulled back to 4167 — literally the same level at which it had found support in early June — and then rebounded. While this current attempt at new highs is accompanied by a strong Nasdaq market, there is a damper on the euphoria because of very poor breadth so far.
The Nasdaq Composite Index /zigman2/quotes/210598365/realtime COMP +0.06% and the Nasdaq-100 Index /zigman2/quotes/210598364/realtime NDX +0.29% (tracked by the Invesco QQQ Trust /zigman2/quotes/208575548/composite QQQ +0.31% ) have both clearly broken out to new all-time highs, and they are somewhat “dragging” the S&P 500 along for the ride. The Dow Jones Industrial Average /zigman2/quotes/210598065/realtime DJIA +0.04% had been the weakest of the broad indexes, although it is now trying to reverse direction back to the upside as well.