Last time we highlighted the trading range between 1836.8-1829.2 which saw a short lived break to support before priced traded back in the range. This signaled to me the strength (not the weakness I was anticipating) of the market since the bears failed to take advantage of the break of support. Instead the market is looking more bullish as we are now making higher highs and higher lows in this now expanded trading range. A break of the 1838.6 would lead me to believe that price will look to challenge the all time highs.
The SPX 15 min candlestick chart below highlights the trading activity over the past two trading sessions. Prices have been trading in the upper end of the trading range and the declines have been short lived. There appears to be absorption of the supply coming in at the top of the trading range which looks bullish. The important part is we can see clearly from the PnF chart above the trading range boundaries which appear to be expanding upward. So we wait for a breakout and jump on for the ride.
Thanks for reading.