SPX made a new high yesterday at 1902.17 after breaking up from the range trading of the last few months. Kudos to my EW friends Pug and Alphahorn who both called this bullish resolution correctly, with Alphahorn saying last week that both of his bull and bear counts required new highs on SPX. That looked somewhat doubtful at the time but well, here we are.
On the SPX daily chart there is nothing to suggest that the new high yesterday might be a significant reversal level, and I’m looking for more upside after the current small retracement completes. SPX tested the upper bollinger band at the high yesterday and we could start a bollinger band ride upwards with SPX trading around the upper band. There is some significant resistance however at the weekly upper band, currently at 1907. SPX daily chart: (more…)