The S&P 500 has been driven higher on solid earnings numbers in the U.S. With the week finishing with no heavy geopolitical headlines (at least in the U.S.) we’ve seen the S&P 500 push higher to stay above it's all time highs.
We are indeed watching the forming of another rising wedge pattern on this market as it has impulsively pushed higher. Last week saw a +1% gain on the week, and flexing against the all time high of $3,000. The +0.59% push we believe is positive sentiment more than a new operating plateau.
We are watching the S&P 500 in this wedge pattern, as we believe it will result in a bearish impulse in the coming weeks. The Relative Strength Index printed a 59.46, stating it hasn’t reached those over-saturated long levels.
THE PLAY: We are neutral as the S&P 500 can press to $3100 before any correction begins to form. If we don’t and indeed impulse lower, we could see.