In the previous post on the S&P 500, price appeared to be moving fast towards the all-time high at $4238, but it has taken longer than expected to get there.
The pullback has turned into consolidation but used the 20 simple moving average as support, which did help price move higher towards the end of last week.
The monthly candle for May closed with an indecision candle, suggesting a potential reversal/pullback, but price is looking strong so far this month.
The fact that rice pulled back last week and bounced off the 20sma gives us the confidence that the uptrend is likely to continue, but a break and close above the all-time high will confirm this.
Friday’s candle closed with a solid bullish candle and price is now just 9 points away from breaking out. If the bullish momentum flows into next week, then we should get that breakout we are waiting for.
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