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Lawrence G. McMillan

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April 8, 2021, 10:34 a.m. EDT

Continue to ride the stock market’s bullish momentum

By Lawrence G. McMillan

The S&P 500 index broke out to new all-time highs on April 1, and then backed it up with an even stronger upside move on the next trading day. This move was accompanied by decent internal strength, too, although as you will see, there are some potential problems developing.

There should now be support for the S&P /zigman2/quotes/210599714/realtime SPX +0.74% at the most recent highs – around 3985. A move back below that level right now would be disappointing but wouldn’t break the uptrend in the chart. There is further support at 3850-3870, and a breakdown below there would change the chart from bullish to at least neutral – and possibly bearish. SPX bounced off that support area on March 25 and hasn’t looked back since.

One new development is that the S&P has now risen above its +4σ “modified Bollinger Band” (mBB) – the circle on the upper right of the accompanying SPX chart. 

/zigman2/quotes/210599714/realtime
US : S&P US
4,232.60
+30.98 +0.74%
Volume: 2.05B
May 7, 2021 5:15p
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