S&P 500/Dow Highlights:

  • S&P 500 hanging out following t-line break, higher-high
  • Dow finding difficulty around April high

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Last week, the S&P 500 broke out above the trend-line extending down off the record high, this week has thus far and probably will continue through the end of today, be nothing more than a quiet week of chopping sideways.

The chop sideways following a strong push off the 2016 trend-line/200-day is viewed as healthy as long as we don’t see a sudden drop back down below the recently captured downtrend line. The rally off the monthly low also took the market beyond the April high, another constructive positive.

For now, we’ll run with the notion the market will try and run higher, perhaps to the March peak just over 2800, a view which will be negated either on a failure from current levels or failed push higher resulting in a strong reversal in momentum.

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S&P 500 Daily Chart

S&P 500 daily chart

Dow finding difficulty around April high

Obviously, the Dow has a similar technical structure to that of the S&P 500, but unlike the broader index it has yet to maintain above the April swing-high. A push above the weekly high at 24994 will have the 25449 swing-high next up as resistance.

Dow Daily Chart

Dow daily chart

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---Written by Paul Robinson, Market Analyst

You can follow Paul on Twitter at@PaulRobinsonFX