S&P Breaks Highs & Prints Bullish Price Action Signal
Checking the charts earlier this week, I was surprised to see the S&P had broken higher past all time highs.
These all time high breakouts are usually a big deal for indicies like the S&P and Dow Jones.
I said to the traders in the War Room that we need to watch for one of two things.
- A fake out event, where the market collapses after poking higher – which would be a very bearish signal
- Signs of strength above the level, where we can see evidence that this is a sustained breakout and likely to see follow-through
I got a Battle Station alert about a bullish signal on the S&P 8 hour chart this morning. Checked it out and here we are.
A nice bullish rejection candle above the breakout level.
This is strong evidence that this breakout is true, and the S&P wants to keep on going with with upward momentum.
It is also nice to see the rejection signal testing the prev all time highs as a new support level, showing that characteristic swinging motion we like to see in trending conditions.
There is good upside potential here, even more if a retracement entry is hit this session.
Best of luck on the charts guys.
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