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.