SPX finally had a clean breakout of the range it has been stuck inside of for a week. Today we saw the larger upside trend continue and SPX also pushed to new all-time highs.

7800 has been officially broken on SPX and the bullish run seems to be back on, firing on all cylinders. The biggest key was NQ today leading the charge, with both MAG 7 and chip stocks rallying strong together.

While SPX did not close at the high of the day, it still made significant progress to the upside and broke some key levels. The daily chart extended higher today out of the bull flag pattern, so we should expect some follow through to continue.

The upper end of the expected move is around 7857 and honestly doesn’t seem too far away. Friday has been one of the most bullish days of the week lately, so can the bulls push us to the 1 standard deviation move?

The grey box we have been tracking for the past week also had one of the cleanest break out -> retest -> continuation patterns we have seen in a very long time. This is the type of images you see in technical analysis textbooks, almost picture perfect. I have highlighted the retest with a blue circle.

SPX broke out strongly this morning, retested the 7780 level almost to the dot, and then continued upward. The theoretical next move of this pattern is a break of 7816, that would be the official confirmation. For now however, things are looking pretty good.

For the sake of it, I’ll throw out a bearish scenario which is SPX breaking below the 7720 area. I personally don’t see this happening, but it’s only fair to throw the downside key level out there as well.

We had a week of exhaustion and rest seemingly come to an end today and the trend has resumed. The 7850 area is the next target on SPX. Can we get there this week or are we going back to sideways chop?

Good luck!