Despite concerns about a slowing US economy, the S&P 500 has recently broken to a new all-time high and looks poised to continue higher in the months ahead.
This breakout was not unexpected. The price of the index had been forming higher lows throughout the year and the series of prior highs at 3,025 formed the upper boundary of an ascending triangle pattern. An ascending triangle pattern is usually a bullish continuation pattern within a rising trend and they usually break to the upside. The pattern here is a textbook ascending triangle pattern. There are five clear "waves" within the pattern and the breakout has occurred on the fifth wave.