S&P 500: Tech Stocks Surge as Apple-Intel Chip Deal Shifts Supply Chain

The S&P 500 Index (SPX) is higher early Tuesday, putting it in a position to challenge the record high at 7272.52. Taking out this level will signal a resumption of the uptrend.

One thing I’ve noticed about this market recently. Despite the uptrend, the price action has been compressing. This could be a sign that some investors are selling the rallies and booking profits. The first minor range is 7272.52 to 7174.12. Its pivot at 7223.32 is support. The second minor range is 7107.86 to 7272.52. Its pivot is at 7190.19. The third minor range is 7046.55 to 7272.52. Since the pivots are rising, I can confirm the uptrend, but if they start failing, then consider it a sign of a shift in momentum.

While the pivots are important levels to watch for early detection of a shift in momentum, an even better indicator will be the failure of swing bottoms at 7174.12, 7107.86 and 7046.55. We haven’t seen a swing bottom fail since March 26. With that kind of time between moves like that, the next one could prove to be significant.