Charting the S&P 500: All-Time Highs Are Within Reach
Stocks make a bold move up as we get ready to finish off a strong month.
You've reached your free article limit
You've read 0 of 1 free Pro articles.
With each passing week the S&P 500 keeps plugging away, grinding higher towards those old highs around 5665. As of Friday's close that point is around 0.5% away, a very easy move if the bulls have the courage to run there.
The past few weeks have been sensational, with strong price action, solid volume (for the time of year, seasonal volume patterns are weak), bullish indicators and expanding breadth. Not to mention the smashing the VIX has taken since that August 5 flight to the 65% level.
If anything, the market has been climbing the wall of worry for weeks. Not many traders/investors believe the markets can cruise higher, but they are doing it. Yet, it is when those on the sidelines are dragged into the game that the worry should start. We are not saying the markets should decline sharply, but a deeply overbought condition is a signal to be noticed. We are not there yet, though.
Notice on the top pane we drew in one more resistance line and also tightened up the channel. This makes more sense as the recent lows have not been tested, and if they are we do not expect to see much damage from that pullback.
