The S+P 500 has moved higher after breaking through the high of a Bullish Engulfing Bar (BUEB) on the daily price action chart. This BUEB was posted up in this blog as it formed and as price was looking to move higher. You can read the original post here: Price makes all time high with Engulfing bar on S+P 500
In that original post I discussed that the BUEB had broken out of a really key support area that would have to hold for price to make any moves higher. As the chart shows below; price did have one last attempt at breaking this level, but the level held as support and once price moved back higher it has since made fresh all time highs.
It is very common after price has made really strong moves in either direction to get into consolidation or winding up. I discuss this in depth in this tutorial here: How Price Action Moves. After price has moved higher again on the daily chart and into all time highs it has now started to consolidate and wind which started with an inside bar. Traders can now watch for a breakout on either side of this winding up, but because the strong trend is higher and this market has been making higher highs and higher lows as well as posting fresh all time highs, the preference in this market it to continue trading with the trend if at all possible.
S+P Daily Chart
Wonderful article. Thank you very much Johnathon. It has helped me a lot.