The stock market rally has taken the S&P 500 Index all the way back to an important price point on the “monthly” chart.

And how the index closes during the summer months may provide further direction to investors, starting with June.

As you can see in today’s chart, the S&P 500 is testing the December 2019 and January 2020 monthly closing levels at (1).

Dumb money confidence is now nearing the highs reached in January, right before stocks peaked. The confidence by dumb money and the S&P testing the December and January monthly closing highs, makes this breakout test fairly important!

It will be important what the S&P 500 does at these monthly closing prices! The S&P’s next move could go a long way toward providing some direction.

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