Cup and Handle Formation

Last week I speculated on a bullish Monday and that's what we got today. Technically, a 5th wave of what appears to be a W3. However, it's not fully clear if there is another W4 correction before another final W5 since this W3 is part of a nested set up. Also, one thing to keep in mind is that the ES S&P500 made an all time high on Sunday night and I don't remember the last time the cash market failed to match a higher high or lower low made in the pre-market. So my expectation is an all time high sooner rather than later. Lastly, there is a potential cup and handle set up targeting 1770 so we'll see if the market follows the trendlines drawn on the second chart. With today's price action the intermediate trend turns bullish again, so all signals are bullish and perhaps we'll get a correction to the TA or the 50 dma and see the market take off from there?

Short Term Trend = Bullish

Medium Term Trend = Bullish

Long Term Trend = Bullish

* Trends are not trade signals. Trends are posted for situational awareness only and does not take into account wave counts, technical or fundamental conditions of the market. While mechanically trading the posted trends is feasible, keep in mind that these are lagging indicators and as such are prone to whipsaws and I personally do not use nor recommend them to initiate or close positions in the market without taking into consideration other factors.