Once again the S&P 500 is testing resistance around the 2,400 level. There is resistance around this level because it is important psychologically and it was an all-time high on March 1st. It was also tested on April 26th.
This time is a little different though. The reason why is that the market is not overbought now, as it was on those two prior occasions. The red line on the chart shows two standard deviations of trading range...so 95% of the trading should be under the line. When the market exceeds it, it is overought and usually ready to revert,