Just a brief blog post here to share some pattern lessons from the S&P 500.
First, context matters, and that context is:
- Bullish because of the existing uptrend from the March 2020 lows. Trend integrity matters.
- Bullish because all-time highs just overhead provide a "magnetic" pull for indexes.
- Low volatility, due to the time of year, that typically features lower average volatility and relatively poor follow-through intraday. (Not that big spikes are impossible; they certainly happen, but the overall volatility tends to be lower.)
A few recent points deserve attention:
A: The uptrend became a