SPYing a new all-time high

The S&P 500 has been the laggard since making a top in January. While the Nasdaq 100 and Russell 2000 have made multiple new all-time highs since then the S&P 500 is yet to reclaim that pinnacle. This has led to much debate about the strength of any move higher. How could the markets or the economy be strong if the S&P 500 is not performing. Actually since April is has been performing quite well.

After a final touch at a 38.2% retracement of the move higher from the 2016 election low to the top, the S&P 500 started to move higher. A series of higher lows and higher highs over the next 3 months has the S&P 500 ETF, $SPY shown below, back near its all-time high. And the conditions seem ripe for a continuation higher.

Momentum is building. The RSI is pushing back up in the bullish zone with the MACD crossing up and positive. The Bollinger Bands had squeezed in since the beginning of July and are now starting to open to allow a move. This as the SPY is pushing up along the top of the Bands. Monday saw the SPY make another higher high close and now only has the all-time high from January in its way before it posts its first new all-time high in over six months.

The structure of the moving averages has also changed recently from a crossed up mess to where they are now nearly parallel and rising along with the price. A Measured Move similar to the last leg higher, would give a target to 294.50 on this next leg. A new all-time high with plenty of room to spare and the big round number at 300 within it sights possibly to follow.