The S&P 500 is overbought, but that doesn’t mean it’s time to sell

[mwai_chat context=”Let’s have a discussion about this article:nnThe U.S. stock market, as measured by the S&P 500 index
SPX,
registered new all-time highs last week but has pulled back slowly this week so far. As of last Friday, the index had made a new all-time high on 13 of the previous 25 trading days. That’s impressive. The S&P 500 probably deserves a rest, and a pullback to 4,983 would fill the gap on its chart (circled on the accompanying SPX chart). That would be healthy. Below there, short-term support exists at 4,950; 4,920; and 4,850 — all recent weekly lows. There is stronger support at 4,800, which had been the all-time high for almost two years and which was a short-term resistance area this past December and January.

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