the S&P 500 showed renewed bullish strength and is at a point where new highs could be on the horizon once again. This post will provide a short-term technical analysis.
The S&P500 has produced powerful advances to the upside over the last two trading weeks. The many strong daily candle closes (at, or very close to the highs) is usually a signature of a wave 3 in action. This is quite plausible from an Elliott Wave perspective as the previous price action (within the two white converging trend lines) can easily be counted as a leading contracting diagonal. Combined with the powerful bullish momentum that followed this structure, a wave 3 scenario is becoming a prime candidate.
In addition, technical factors used within the SWAT system also suggest that further gains and new record highs are still on the cards:
Even if the structure since Jan still requires some more sideways movements before it is complete (which i see as having lower odds due to the latest bullish price-action momentum), the way is highly likely leading upwards still for US equities, in spite of the fact that we are the very late stages of medium-term trend.
All the best along your trading journey