S&P 500 advance-decline lines hit new highs

Two key market breadth indicators improve on the S&P 500

After struggling for a few weeks, both the S&P 500 advance-decline line and volume advance-decline lines have hit new highs to confirm the higher highs on the S&P 500 north of 6700.

Chart 1: S&P 500 (top) and the S&P 500 advance-decline line (bottom)

Chart 2: S&P 500 (top) and the S&P 500 volume advance-decline line (bottom)

Key support and resistance for the S&P 500

The S&P 500 shows chart support at 6570-6550 with rising 26- and 40-day moving averages at 6591 and 6536, respectively, which are near-term risk management supports for October.

• If these supports hold, the rising channel projects into the upper 6700s to low 6800s.

• A failure to hold would open the door for a deeper pullback with the next support at 6360-6343.

• The broader upside breakout remains intact above 6147–6100, reinforced by the rising 200-day moving average at 6031.

• The breakout above 6100-6147 targets 7400s longer term.

Chart 3: S&P 500: Daily chart