Back in the 1970’s, The Jefferson’s depicted the life of an African American couple that had made it, in a sitcom format. They had moved to the Upper East Side in Manhattan. This neighborhood is still one one the wealthiest places on the planet. The theme song from the show, “Movin’ On Up!” stuck in my mind Monday after the S&P 500 closed at another record high. It too is moving on up.
The chart below of the S&P 500 ETF, (NYSE:SPY), shows the dramatic rise since the election, almost 20%. There have been a few pullbacks and consolidations along the way but it has been a steady trend, higher highs and higher lows. So how high can it go? Many will give you an answer but making that prediction is a Fools Choice. It is easier to follow it higher until it stops.
So what can we say about the S&P 500 then? Several things. First, the movement Monday clearly broke through what had been some resistance at the price level of 248 in the ETF. Break outs after long consolidations, 2 months in this case, can move higher for a while. Momentum is on the side of higher prices. The RSI indicator is in the bullish zone but it is also rising to a higher high. The MACD is also rising and is now positive, but well below levels where the price has reversed in the past.
Maybe the prettiest part of this chart is a look at the SMA’s as they rise, nearly parallel, from the lower left to the upper right. I do not know when this is going to stop but the S&P 500 is clearly moving on up!
DISCLAIMER: The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.