The S&P 500 has been a wrecking ball, blasting through resistance after resistance over the last two months. In all, the markets are up 15% from their lows in February. SPY is now hitting a level that is more important than many of the last resistance points.
If you connect the highs stretching back to SPY's all-time high in May 2015, it creates a perfect trend line that's now being tagged. Note the chart below. Is this where it will pull back? In normal market conditions, that would be an epic pull back. However, with the Federal Reserve continuing to wave the white flag and volume remaining near decade lows, it's not as easy to call as usual. Ultimately, we have to trust the chart and believe that a pull back is near.