The S&P 500 just printed its 5th all-time high of the year.
Here’s the chart:
Let's break down what the chart shows:
The top panel shows the S&P 500 as black candlesticks.
A green line represents the 50-day moving average.
A red line represents the 200-day moving average.
Vertical grey bars appear throughout the chart and highlight when the S&P 500 was at all-time highs.
The lower panel displays the daily RSI as a line that shifts between green and red based on regime, with horizontal levels marked at 30 and 70.
The Takeaway: The S&P 500 just printed its 5th all-time high of the year after going 55 trading days without one. Price pushed back to the same level that stopped the last move higher and broke through it.
The pullback didn’t break the trend. Price dipped below both the 50-day and 200-day moving averages, but it didn’t stay there. Buyers stepped in quickly and pushed price back above them. The 50-day rolled over for a time, but it never crossed below the 200-day and has now turned back up, while the 200-day kept rising the whole way through.
Now that both moving averages are rising again, this is what you want to see when price is making new highs.
And then you look at momentum. Which washed out during this most recent pullback, but it has turned back up really fast. RSI dropped into oversold and is now pushing near 69. It sits just below the 70 level that flips it back into a bullish range.
This is not a recovery from a breakdown.
This is a continuation move after a controlled pullback.
Price held where it needed to hold, momentum is on the edge of a reset, and the bulls stepped back in and pushed it to new highs.
Bears had their shot. They missed. What’s the next move?
