By Lawrence G. McMillan
The S&P 500 index completed a minor pullback last week, bottoming out on Aug. 19 right near the previous support level of 4370.
That support level is now strengthened even further, as it has held for the third time in a month. Since then, the S&P /zigman2/quotes/210599714/realtime SPX -0.11% has made new all-time intraday and closing highs, as has the NASDAQ-100 /zigman2/quotes/210598364/realtime NDX -0.87% /zigman2/quotes/208575548/composite QQQ -0.84% . The Dow Jones Industrial Average /zigman2/quotes/210598065/realtime DJIA +0.21% is still lagging behind by a small amount, but that is OK.
That’s the good news; the bad news is that there is still a negative divergence between SPX and the “average” stock.