By Matthew Kerkhoff
Let’s start with the obvious. The S&P 500 closed at a new record high yesterday of 2121.10. This marks the S&P’s seventh record close this year.
We had been eyeing an upside breakout for the index based on the ascending triangle formation (chart below), and while it’s nice to see the index rise above its upper trendline, we’ll need it to remain there for a few sessions for additional confirmation.
It may be hard to discern from all the recent choppy trading, but the market continues to grind higher. This is evident not just from price action but also as the market becomes more expensive on a price to earnings basis. According to FactSet, the S&P 500 is currently trading at 17.3 times last year’s earnings, up from 16.3 one year ago.
Market tops are frequently long, exaggerated periods of churning, and so while new highs in a key index are encouraging, ... Log in or subscribe to continue reading.