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Lawrence G. McMillan

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Jan. 6, 2022, 11:15 a.m. EST

This is the key support level for the S&P 500 — and it’s not far from it

By Lawrence G. McMillan

The S&P 500 index has seemingly run out of gas after reaching new all-time highs. It is now testing support near the 4700 level.

As has been the case for a while, market internals are not strong, as the big-cap stocks are leading the way while small-caps struggle. In fact, the Dow Jones Industrial Average /zigman2/quotes/210598065/realtime DJIA +0.03% is even stronger than the S&P /zigman2/quotes/210599714/realtime SPX +0.01% in some ways. But the broad-based indexes such as the Russell 2000 /zigman2/quotes/210598147/delayed RUT -0.17% /zigman2/quotes/209961116/composite IWM -0.25% and the Nasdaq Composite /zigman2/quotes/210598365/realtime COMP -0.30% are lagging well behind. Even the NASDAQ-100 /zigman2/quotes/210598364/realtime NDX -0.34% /zigman2/quotes/208575548/composite QQQ -0.31% is struggling a bit.

When SPX broke out to new all-time highs at the end of 2021 and the beginning of 2022, it left behind support at 4700 – the area of the old highs. That level is now being tested.

/zigman2/quotes/210598065/realtime
US : Dow Jones Global
31,261.90
+8.77 +0.03%
Volume: 498.89M
May 20, 2022 5:03p
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/zigman2/quotes/210599714/realtime
US : S&P US
3,901.36
+0.57 +0.01%
Volume: 3.00B
May 20, 2022 5:03p
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/zigman2/quotes/210598147/delayed
US : US Composite
1,773.27
-2.96 -0.17%
Volume: 1.85M
May 20, 2022 6:22p
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/zigman2/quotes/209961116/composite
US : U.S.: NYSE Arca
$ 176.08
-0.45 -0.25%
Volume: 42.24M
May 20, 2022 4:00p
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/zigman2/quotes/210598365/realtime
US : Nasdaq
11,354.62
-33.88 -0.30%
Volume: 0.00
May 20, 2022 5:16p
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/zigman2/quotes/210598364/realtime
US : U.S.: Nasdaq
11,835.62
-40.01 -0.34%
Volume: 0.00
May 20, 2022 5:16p
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/zigman2/quotes/208575548/composite
US : U.S.: Nasdaq
$ 288.68
-0.90 -0.31%
Volume: 91.76M
May 20, 2022 4:15p
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