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Lawrence G. McMillan

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June 26, 2021, 3:57 p.m. EDT

Buy stocks now that the S&P 500 is finally charging out of its range

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.

/zigman2/quotes/210599714/realtime
US : S&P US
4,574.79
+8.31 +0.18%
Volume: 2.02B
Oct. 26, 2021 5:01p
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/zigman2/quotes/210598365/realtime
US : Nasdaq
15,235.71
+9.01 +0.06%
Volume: 6.47M
Oct. 26, 2021 5:16p
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/zigman2/quotes/210598364/realtime
US : U.S.: Nasdaq
15,559.49
+45.29 +0.29%
Volume: 691,575
Oct. 26, 2021 5:16p
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/zigman2/quotes/208575548/composite
US : U.S.: Nasdaq
$ 379.12
+1.19 +0.31%
Volume: 47.19M
Oct. 26, 2021 4:00p
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/zigman2/quotes/210598065/realtime
US : Dow Jones Global
35,756.88
+15.73 +0.04%
Volume: 321.91M
Oct. 26, 2021 5:01p
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