By Lawrence G. McMillan
The S&P 500 index has been trading in a range between twice-tested support at 4060 and the all-time highs at 4238. As it nears the top of this range, a volatile move is likely to follow: Either it will break out to new all-time highs, which would certainly engender some strong follow-through buying, or it will fail at the top of the trading range and move lower to test the bottom of the range once again.
Either move is likely to be swift.
Let’s review the indicators, and then we can judge what strategy to apply to this theory.