“That’s something that is giving technicians reason to doubt the sustainability of the rally,” Kilgore wrote. “Technicians believe declining participation in a rally means there is less support for further gains.”
Yet Investors Intelligence technical analyst Tarquin Coe said conditions are not overbought and sentiment is not euphoric as the S&P 500 sets a new high, breaking the previous record from 2007 at 1576.09.
“The index should now follow through on its breakout, likely up to the psychological 1600 level,” he said.
Other ETFs pegged to the benchmark include Vanguard S&P 500 ETF (NYSEArca: VOO) and iShares S&P 500 Index (NYSEArca: IVV). [Comparing Three S&P 500 ETFs]
S&P 500
Full disclosure: Tom Lydon’s clients own SPY.