“With the small cap Russell 2000 hitting record levels for a third day Tuesday, traders are watching to see if the S&P 500and Dow will follow it. The Dow is within striking distance of its all-time high, just 109 points from 15,409, the close reached on May 28, and the S&P is just 1 percent away from the high it set on May 21, of 1669.
“I didn’t think it would get there this quickly, but it sure seems like it might make it,” said Randy Frederick, managing director of active trading and derivatives at Charles Schwab.
“The key is 15,340,” said Paul LaRosa, chief market technician at Maxim Group. “If we close above that, the highs are in sight.” The Dow closed up 75 points Tuesday, at 15,300, and the S&P 500 closed at 1652, up 11. The number he is watching in the S&P 500, is 1654, Tuesday’s intraday high, and if it closes above that level, he expects to see new highs.
“It feels like we could get there and a lot of the technology names are looking pretty good, some of the regional banks look good,” said LaRosa. “The consumer companies led it early on and now they’re treading water while technology, banks and special situations have been powering this rally lately…Retailers are one group that’s been strong.”
LaRosa said the two big threats to the rally are interest rates and earnings. Treasurys were mostly higher Tuesday, and the 10-year yield was unchanged at 2.63 percent, off the 2.73 percent level it hit Friday but well above its early May low of 1.62 percent….