Does the Market Care We're At May Highs?

A few of the major US stock market averages have already exceeded their May highs, in particular the Russell2000, Nasdaq100 and the Russell MicroCap Index. But some of the important ones still have not. Today I want to take a look at the S&P500, which has rallied 3 straight weeks to get back up to former resistance. Should we care? Is this something we should act on?

Here's the chart of the S&P500 Index:

Approaching this week with a level head and an open mind, I ask myself, Is this somewhere I want to be buying? Well, can we just blow right past this resistance and keep going on to all-time highs without looking back? Sure, the market can do anything I suppose. But is that the high probability move? It's not to me.

The Dow Jones Industrial Average is in the same boat. Here we are, right back to May resistance:

So will the Dow and S&P just keep ripping without at least temporarily acknowledging these levels? I can't put my money behind that thesis with a straight face. At least not as of this morning.

Tags: $SPX $SPY $ES_F $DIA $DJIA $IWC $IWM $QQQ