Using the Relative Strength Indicator the S&P500 is showing the third strongest run in 40 years... and surpassing the other two in Nov-1995 and Mar-1986. But don't try to call the top...
In each case the S&P500 made higher gains, and momentum actually faded significantly before any major pullback.
Major pullbacks are preceded by consolidating ranges (i.e. absence of higher highs) and often higher lows. It from these trading range that S&P 500 often fails.
In each case the S&P500 made higher gains, and momentum actually faded significantly before any major pullback.
Major pullbacks are preceded by consolidating ranges (i.e. absence of higher highs) and often higher lows. It from these trading range that S&P 500 often fails.