This is why the SPX is overdue for at least a 2.50% pullback
The equity markets in the US have been moving really well through highs like its nobody's business, however as they continuously progress the moves get shorter and the pullbacks non-existent. Recent a 1.5-2 year wedge in formation was broken to the upside which indicates a bull trend continuation. Usually, the pop above the broken resistance will revert at least temporarily to the broken level before moving higher. This isn't a crash and recession call to all-time lows rather an opportunity to identify a potential retrace before a larger pop.
The facts are, the volume on this whole break higher has been terribly low, no one wants to buy a market at all-time highs and no one wants to sell because they want more profit.
Its been 2 months with just 1 red week and that red week was insignificant. The pullback brings the price down to the wedge break and previous highs at least 2.50% lower than the price right now. From there, there will be 2 catalysts that bring price higher.
1. A lot of big money is waiting for an "in" on the long side of the market and when deemed cheap enough will bid up the market by strong buying.
2. The Fed is still pumping A LOT of money into the economy at abysmally low rates.
The facts are, the volume on this whole break higher has been terribly low, no one wants to buy a market at all-time highs and no one wants to sell because they want more profit.
Its been 2 months with just 1 red week and that red week was insignificant. The pullback brings the price down to the wedge break and previous highs at least 2.50% lower than the price right now. From there, there will be 2 catalysts that bring price higher.
1. A lot of big money is waiting for an "in" on the long side of the market and when deemed cheap enough will bid up the market by strong buying.
2. The Fed is still pumping A LOT of money into the economy at abysmally low rates.
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