By Lawrence G. McMillan
The S&P 500 index broke out above its previous highs this week, registering new all-time highs on three separate days.
However, the recent run has been so strong that the market /zigman2/quotes/210599714/realtime SPX -1.89% appears “tired” (breadth is weakening badly, for example), and some sell signals are already beginning to appear. The first support level on the S&P chart is in the 4520-4550 range. A close below 4520 would fill the first gap on the chart (there are still a lot of unfilled gaps) and would probably lead to further near-term weakness.
Further support levels are hard to identify since the advance during October was so strong, but there is clearly support near and just above 4300.