The S&P 500 has been trending strongly larger because the pandemic low, and on that it’s troublesome to guess towards it even when at occasions it appears too excessive to purchase. That doesn’t imply we get complacent, although, as an prolonged market can activate a dime and do-so with seemingly little warning.
With that in thoughts, we should stay vigilantly bullish. So long as the SPX stays above the October 2020 trend-line and doesn’t break under 4495, triggering a lower-low, then “the development is your buddy” as they are saying.
How excessive may the market rise? That’s anybody’s guess.
The popular method to buying and selling equities is to purchase on pullbacks versus chasing momentum at new highs. That is as a result of propensity for equities to say no in pretty quick order after notching new highs earlier than continuing on larger.
A break under the trend-line and 4495 would warrant warning and maybe a change in gears in direction of a bearish bias as deeper correction threat rapidly rises.
S&P 500 Every day Chart
