By Lawrence G. McMillan
The S&P 500 index broke down below significant support areas in the past week. However, as has been the case for several months, the bears have not been able to keep control even after a significant breakdown such as the one that just occurred.
That significant support level was at 4370, where three declines had ended previously. But on Monday, the S&P /zigman2/quotes/210599714/realtime SPX -0.11% blew right through there and declined to nearly 4300. More importantly, it closed below 4370.
However, SPX has continued to rise since then and is now about to close the gap on its chart at 4430 (circled on the accompanying price chart). If SPX closes above 4430, that would be a strong showing for the bulls, even though it would still leave some overheard resistance (up to 4490) and would still be below the now-declining 20-day moving average.