A number of technical indicators suggest the market is due for a rest but the oscillators based on advancing and declining issues (McClellan) suggest further upside. Given this backdrop the advantage must be given to the bulls as they made a new ATH in SPY and am sure would like to do the same with $SPX .
But whether they can do this moving up day after day is a serious question and one open to debate. While I do not fully understand what is behind the buying other than money and lack of alternatives, oil has being playing an important role.
Recently, $SPX correlation with oil has been something around 70% and in shorter time frames approaches 100%. Higher oil prices are good for energy companies, reduce default risk and compress spreads in CDS’s.
With all of that said, I believe a decent pullback is looming either from exhaustion and/or a catalyst. After looking at the charts and using the three point Fib extension tool, the level of 2018 may be an interesting level owing to its calculation, know resistance and the LAST line of descending resistance drawn from the highs of last summer.