Happy Tax Day! It’s Tax Day in America for everyone except the bears. They don’t have to worry about paying taxes because they don’t make any money!

SPX made new all-time highs again, completely blowing through the previous level and closing at the highs of the day. SPX is now approaching a 2 standard deviation move for the week with 2 more days still left to go on the week.

The 6990 level was in question yesterday and whether or not SPX would shatter through it and run higher, and we got our answer today. SPX has not respected any upside key levels in about 3 weeks now and it doesn’t look like it’s about to stop any time soon.

The daily chart is a vertical line pointing straight up. SPX has rallied over 700 points in less than 3 weeks. This is one of the craziest up moves we have ever seen. I also want to point out and have everyone recall what happened last year when SPX started to rally from the liberation day lows. Once SPX broke 6000, we hit 6100, 6200, 6300 and 6400 pretty quickly – just in a matter of a few weeks.

Last summer SPX took 5 weeks to go from 6000 to 6400 once 6000 was broken. Do we see a repeat of that again? To put it into perspective, that would mean SPX is at 7400 before Memorial Day. It sounds insane but it happened last year.

Obviously that is getting way too ahead of ourselves and it feels wrong just even mentioning that. I don’t think that actually happens, but I guess the precedent is there. I guess we’ll see if this year is just a repeat of next year or not.

So the 6990-7000 area becomes support now, and probably a pretty strong support level. Once SPX broke this level to the upside, it just kept running. I think there were a lot of fresh longs that came in at this price hoping it would break to a new all-time high.

The bulls are in full control of this market and the upside momentum is some of the strongest we have ever seen. SPX is almost 100 points above the upper end of the expected move. Even if it falls back down to that level, it would still be a crazy up week.

6990 is the first key level to the downside. To the upside, I guess we start looking at psychological levels like 7050 or 7100. We don’t know where SPX goes next to the upside, but those nice round numbers are a good start.

We might be in for a crazy couple of weeks with some insane upside movement. Needless to say, buy the dip is in full force. The signal is very clear and the market is incredibility bullish. I think this bullishness should also serve as a shield to any negative news.

If we dip, it’s probably worth buying even at these levels. If you are a believer in price action or tape action, then there is no reason to be bearish.

Good luck!