The SPX has left the wedge (dotted) to the top and is heading to test the older ATH at 2872.
With this move it has reentered the tighter ascending trend channel which is located within the wider channel, confirming that the trend is at new bullish.
This trend is accompanied by high volume.
The indicators RSI and MACD also are heading to higher levels and confirming the trend.
I think a test of the ATH is very probably and I can imagine that we´ll see even higher prices.
But:
One should have in mind that the actual rally is coming from some stimulus out of the Trump taxation program (beginning in 2017) and the strength of the Dollar. The taxation program is losing its dynamic and the war on tariffs (e.g. China) is gaining force. If secondly the strength of Dollar doesn´t continue then a change of the bullish trend of all US - indices is to be expected.
In my eyes the rally will not go very far and a correction will be short and hard.
With this move it has reentered the tighter ascending trend channel which is located within the wider channel, confirming that the trend is at new bullish.
This trend is accompanied by high volume.
The indicators RSI and MACD also are heading to higher levels and confirming the trend.
I think a test of the ATH is very probably and I can imagine that we´ll see even higher prices.
But:
One should have in mind that the actual rally is coming from some stimulus out of the Trump taxation program (beginning in 2017) and the strength of the Dollar. The taxation program is losing its dynamic and the war on tariffs (e.g. China) is gaining force. If secondly the strength of Dollar doesn´t continue then a change of the bullish trend of all US - indices is to be expected.
In my eyes the rally will not go very far and a correction will be short and hard.