The S&P500 made a bullish breakout above the resistance trend lines (dotted orange) for a bullish continuation as expected last week.
We actually mentioned a long trade setup in the ecs.LIVE webinar yesterday as the pullback and continuation offered an ecs.SWAT system setup (Manhattan strategy, entry indicated by purple arrow). The HMA is down on the 1 hour chart so a bearish correction back to the 21 ema zone and support trend line (blue) is likely at the moment. We are expecting a bullish bounce at the support zone for a continuation higher (blue arrows).
The daily chart is showing a strong momentum to the upside, which is clearly indicated by the ecs.Candles of the ecs.SWAT system. The uptrend is in play since price broke the larger contacting triangle chart pattern. Price is now close to the top of the channel, which is a new bounce or break spot. A bearish bounce could see price bounce at the support.
The S&P500 seems to have completed a contracting triangle as price is breaking away from the 21 ema zone. A continuation higher to retest the top and a new high seems likely.