On the S&P 500, the last week was another one with the new all time highs in it. If You did not get used to that, probably you are relatively new to the market. We have many reasons to think that the upswing should be continued.
Anyway, the scenario here was rather typical. The price made a V shape reversal, from the major up trendline and went higher. In the same time, the price formed an ascending triangle pattern, which was promoting a further upswing. That is what happened. The price broke the horizontal resistance (yellow) and went up setting the new ATH. Current action is typical too. After the breakout of the resistance, the price is currently testing that as a support (yellow). According to the rules , this is the place, where we should see a bounce. Chances for that are quite high.
The positive sentiment will be denied, when the price will break the blue up trendline but odds for that are very limited. Any decline will be a great occasion for another V shape reversal – movement beloved by American investors.
