The S&P 500 Is Eyeing All-Time Highs—But Stay Nimble

​The S&P 500 is closing in on new record territory, and according to technical signals, the index still has room to run. But traders should remain alert—potential sell signals are also lurking.

The index recently broke above the downtrend line that connected its February and May highs, a key breakout that now puts the next major target at 6,150. Several support levels lie below, ranging from 5,940 down to 5,700.

Many technical indicators are pointing higher. The McMillan Volatility Band remains on a sell signal, but that could shift if the S&P 500 closes above the upper band—currently near 6,100 and declining. Meanwhile, equity-only put-call ratios continue to decline, indicating bullish momentum, although some computer-based models suggest caution as they near potential sell zones.

Market breadth has improved sharply in the past week, helping to stop out previous sell signals from breadth oscillators, which are now in overbought territory. Cumulative volume breadth has hit new all-time highs across multiple days—typically a sign the index will follow suit.

The VIX, Wall Street’s volatility gauge, recently dropped below 18, triggering two buy signals. The first is a “spike peak” buy signal that will remain in effect unless VIX surges again. The second, a trend-of-VIX buy signal, was confirmed on June 9 and will stay active unless VIX climbs above its 200-day moving average.

Overall, the volatility derivatives market remains mildly bullish, with the term structure of VIX futures upward sloping—another sign that stocks could push higher.

​Bottom line: The S&P 500 looks poised to challenge its all-time high of 6,150 in the near term. But with some early warning signals starting to emerge, traders should stay flexible and ready to adjust if conditions shift. The rally still has fuel—but it’s not a time to get complacent.