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What Will Break the S&P Out?

Todd Bunton

As of Tuesday morning, the S&P 500 stood within 5 points of its all-time closing high of 1565.15 on October 9, 2007. This is familiar territory for the index, as it has been hovering between 1550 and 1564 for the better part of two weeks.

In fact, the market has closed within 1% of its all-time high in 10 out of the last 12 trading days.

This resistance should come as no surprise considering the psychological significance of "new all-time highs" for the market. But what will it take for the S&P 500 to finally break above this resistance level and reach a new high?

A. No external catalyst needed. Just time and patience.
B. Better-than-expected economic data. Next week's jobs data could be the spark.
C. A strong start to Q1 earnings season next month.
D. Something else will break us out.
E. No breakout is coming. At least not for a while.

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