With the all-time high of 2130.82 now only 1.4% away for the S&P 500, the question is: Will it be able to break out to new highs? One thing to note is the 2,100 level has been very firm resistance since it was first breached on February 17, 2015. It last was above this level in early December, ahead of the 13% drop over the following two months.
Looking specifically at the 2,100 level, the S&P 500 has closed above that level 95 times; but on 56 of those days it also traded beneath 2,100 before closing above it. In other words, this level has been extremely sticky and the S&P 500 hasn’t been able to separate from it at all.
Turning to the Dow, it first closed above the 18,000 on December 23, 2014, when it closed at 18,024. Last night it closed at 18,053. So in nearly 16 months, the Dow has gained less than 30 points. But we know it was anything but calm over that time frame. In fact, the Dow has moved a total of 42,204 points (combined up and down days) since that first close above 18,000 in late 2014.
Burt White summed up the action with this quote by Ernest Hemingway, “Never mistake motion for action.”
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