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Lawrence G. McMillan

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March 18, 2021, 10:58 a.m. EDT

Stay bullish on the stock market by adding this core position

By Lawrence G. McMillan

The S&P 500 index has managed to slog through the heavy resistance area at 3870-3950 and break out to new all-time highs, both on an intraday and closing basis. 

As was the case last week, the Dow Jones Industrial Average /zigman2/quotes/210598065/realtime DJIA -0.56% continues to outperform the S&P /zigman2/quotes/210599714/realtime SPX +0.08% and is leading the way. Small caps, as represented by the Russell 2000 Index /zigman2/quotes/210598147/delayed RUT +0.14% /zigman2/quotes/209961116/composite IWM +0.14% have started to lag behind over the past few days, though, and the Nasdaq Composite /zigman2/quotes/210598365/realtime COMP +0.59% is lagging well behind, having made its highs in mid-February. Things would look a lot better if the Nasdaq Composite, or at least the NASDAQ-100 /zigman2/quotes/210598364/realtime NDX +0.75% /zigman2/quotes/208575548/composite QQQ +0.62% could join the party. 

As it is, there should be support for the S&P in the old resistance area: 3870-3950. A close back below 3870 would be very negative, for it would mean that the recent upside breakout was a false one. 

/zigman2/quotes/210598065/realtime
US : Dow Jones Global
35,911.81
-201.81 -0.56%
Volume: 396.47M
Jan. 14, 2022 5:16p
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/zigman2/quotes/210599714/realtime
US : S&P US
4,662.85
+3.82 +0.08%
Volume: 2.52B
Jan. 14, 2022 5:16p
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/zigman2/quotes/210598147/delayed
US : US Composite
2,162.46
+3.02 +0.14%
Volume: 1.45M
Jan. 14, 2022 6:22p
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/zigman2/quotes/209961116/composite
US : U.S.: NYSE Arca
$ 214.31
+0.30 +0.14%
Volume: 42.02M
Jan. 14, 2022 4:00p
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/zigman2/quotes/210598365/realtime
US : Nasdaq
14,893.75
+86.94 +0.59%
Volume: 3.76M
Jan. 14, 2022 5:16p
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/zigman2/quotes/210598364/realtime
US : U.S.: Nasdaq
15,611.59
+115.98 +0.75%
Volume: 759,246
Jan. 14, 2022 5:16p
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/zigman2/quotes/208575548/composite
US : U.S.: Nasdaq
$ 380.01
+2.35 +0.62%
Volume: 80.12M
Jan. 14, 2022 4:00p
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