By Lawrence G. McMillan, MarketWatch
On Sept. 5, the S&P 500 index decisively broke out over the previous heavy resistance area at 2940. Not only did it break out, but it gapped higher, leaving a gap on the chart from roughly 2940 to 2960. Meaningless gaps are often filled quickly, but those that last longer indicate a stronger market at work. That could well be the case here.
This week, the S&P /zigman2/quotes/210599714/realtime SPX +0.48% traded in a narrow range between 2960 and 2990, before breaking out over 3000. The all-time highs at 3028 are clearly in sight now. In theory, that represents the only resistance area on the chart currently.