S&P Challenges All-Time Highs
Declan Fallon | Oct 21, 2021 12:19AM ET
Once the NASDAQ broke through resistance (former support) defined by the July and August swing lows it has managed to hang on to regained support. Technicals are net positive and the index is again outperforming the Russell 2000.
It still has some way to go before it challenges the September high and finished on Tuesday with a small bearish candlestick.
The S&P has managed to reach a point to challenge the August high. It managed to do so on higher volume accumulation, although following the sequence of bullish white candlesticks I would expect it to now consolidate—perhaps forming a 'bull flag' before forming new highs.
The Russell 2000 (via IWM) retains its range-bound action, although I have drawn in a second resistance level which may be enough to qualify it for a breakout if it can get past this level. Remember, triple tops are rare, and here we are looking at a triple top—which means the chance for a breakout is high.
First we had the NASDAQ recovering from its breakdown, now we have the S&P challenging all-time highs and soon we could see the Russell 2000 clear its 2021 trading range. All of these point of a return to a bull market. With the end of the pandemic not likely until sometime next year, we are unlikely to see a 'sell the news event' before then.
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