Will history repeat itself or will the S&P 500 Index break through the resistance level at 1125? The S&P 500 Index has been stuck in a trading range since the beginning of May 2010. Of all the major stock indices, the NASDAQ 100 Index is the only one to break through the upper end of the near-term trading range. The S&P 500 Index is going to need some additional buying demand in order to get through this heavy resistance level at 1125. From a pure technical standpoint if the S&P 500 Index can hold the 1116 level and break the 1125 level, then it's possible to see 1150. This market is quick and appears at times to be bi-polar so we need to see some confirmation to the upside. This confirmation will come in the form of higher prices on higher volume.
The technology space is showing some strong relative strength as the majority of companies in the sector are reporting strong results, announcing large share repurchase programs, and initiating or increasing their dividend payout. These technology companies are putting their cash to work via strategies (share repurchases and dividends) to increase shareholder value. Furthermore, there is strong M&A activity in the technology space as companies look to grow their top and bottom lines through non-organic means.
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