Another extremely bullish week (36 points gain) and SPX has reached all time highs. As you can imagine there is no resistance ahead since SPX is wondering now in uncharted territories. This doesn't mean market will go up forever. It will correct, of course, but nobody knows when this will happen. As for the bear market ... there are no long term bearish signs so far.
Weekly chart looks very bullish. The only bearish signal is a negative divergence in MACD. Notice the downtrend line on MACD diagram (since the beginning of the last rally) while SPX is making higher highs.
Daily chart is also bullish. Daily DMI turned negative two Fridays ago when SPX slipped bellow 1,540 in the morning but now, once again is positive. From 1,540 SPX rallied 55 points to 1,595 in only four trading days this week, giving up just 5 points on Friday.
Needles to say that SPX also looks bullish on the two hour chart.
Contrarians say that market is going to correct when nobody is talking about correction anymore. I must say I hear less and less people talking about correction so maybe we are close to one!
All the best!
babaro
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