Summary:

• US indices higher ahead of cash open
• US500 at 6-month high and not far from record peak at 2880
• US30 testing prior resistance around 25600

Stock markets made a quietly bullish start to the new week with the large-cap US indices moving above last week’s highs. The gains were fairly measured in the way they came, but it seems to be that more upside may lie ahead with the trading adage “don’t short a quiet market” seemingly apt as the benchmarks rise on light traded volumes. The US500 is now within 1% of its record peak of 2880 and it wouldn’t take much more upside for more records to tumble in the coming sessions.   

 

 The US500 is looking for a 4th consecutive day of gains and is now back within striking distance of its all-time peak of 2880. Source: xStation

It is now 132 trading days since the last all-time high was made, and what is worth noting about the interim period is that 131 of those days saw the US500 close above its 200 day SMA. The big picture remains one of consolidation within a prevailing uptrend and should price breach the previous peak then a sustained push higher may lie ahead. While the US500 and US100 have made significant breaks higher of late, the US30 remains something of a laggard. 

The US30 has been in a broader consolidation since the all-time high back in January with a narrowing range shown by a series of lower highs (LH) and higher lows (HL). The recent weeks have seen this possibly negated but longs will want a push above 25600 to stop a possible double top forming with the recent swing high. 

 US30.cash is lagging behind its peers a little but a clean break above 25600 could see it make a swift push higher. Source: xStation