Breakthrough 06-10-21

On 05/07/21 the S&P 500 (SPX) made an all-time high which held for 33 calendar days.  Today – day 34 and a New moon the SPX broke through the resistance at SPX 4238.04.

The SPX 30-minute chart courtesy of Trading View illustrates the action since late April.

After the breakthrough, the  SPX rallied for about a half hour then turned down sharply.  It’s possible the Elliott wave – Ending Diagonal Triangle (EDT) discussed in the 06/09/21 blog needed  further construction. Maybe the EDT completed today?  A  move above todays SPX high will confirm todays bullish breakthrough. If so, seasonal patterns become an important factor. Todays bullish move comes in at a seasonally bearish time, it’s possible this rally could continue into late July or early August.

Watch the Dow Jones Industrial Average.  If it makes a new all-time high with the SPX continuing to make new highs, it would be another bullish confirming indicator.

If the SPX  does not move above the 06/10/21 high and goes  below 4218.14 it would be another clue that an EDT completed today. If this happens a blog  will be posted discussing the wave count.

The move above SPX 4238.04 triggered a stop loss of a 50% position initiated on the open 05/04/21 at SPX 4174.04. Total move up to the stop level was 1.4% the loss on the 50% position was 0.70%.   

Published by Mark Rivest

Independent investment advisor, trader, and writer. Articles have appeared on Technical Analysis of Stocks and Commodities , Traders.com Advantage, Futuresmag.com, and Finance Magnates.

2 thoughts on “Breakthrough 06-10-21

  1. I would suggest that this upside “breakthrough” will turn out to be “false”
    The financial stock index XLF reversed sharply today, and closed on it’s lows.
    Financial stocks lead bull markets yet the financials are rolling over this week.
    This bearish divergence,should be watched closely.

    Like

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