S&P 500 futures: Bulls eye breakout beyond record highsS&P 500 futures have been marching higher for more than a week, attracting buying on dips towards uptrend support. With RSI (14) and MACD confirming the bullish price action, the path of least resistance looks higher, putting a retest of 6053.25 on the radar.
With the bias to buy dips near-term, there are two setups available: the first would be to wait for a break above 6053.25. If it were to hold beyond the ultra-short term, you could initiate with a tight stop beneath for protection. Alternatively, if we were to see another retest of uptrend support, longs could be established above it with a stop beneath for protection.
Some traders use extension measures to assess potential targets when trading at record high, but I’m more simplistic; round numbers, such as 6100 using this example, are one option. Another would be to wait for an obvious topping signal from either a single or multiple candle pattern. When one comes along, bail. Otherwise, let it ride.
If the price were to break and close beneath the uptrend, the bullish bias would be invalidated.
Good luck!
DS.
