Thursday's Market Minute: Bears Blasted Again As Equities Soar

Bulls took the equities market by storm during the past two weeks, as major U.S. indices continued their relentless advance into new all-time highs. The S&P 500 futures contract has cruised up more than 5% since breaking above February’s pre-COVID highs near 3400 on Aug. 24, and has seen only four red candles in the past 26 trading days.

From a technical perspective, the daily RSI made new highs along with price and the weekly RSI also crossed into the overbought area, both of which are typically regarded as bullish. Yesterday’s large green candle that closed near the daily highs outside the upper Bollinger Band and on volume above the 50-day Simple Moving Average also does not bode well for the bearish case.

Going forward with the /ES, watch for a stall near 3625, which is the upper boundary of the two Standard Deviation Channel study. For support levels, keep an eye on the volume node near 3485 and the 21-day Exponential Moving Average near 3420.

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