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%.