This is perhaps the most bearish rally in history. The number of people yelling that the market will crash 80% to 90% is still amazing and the number of short positions remains at record highs, proving this rally is far from over. Now we approach a cluster of Weekly Bullish Reversals below the former major high of 18351.36. The three reversals providing resistance stand at 18138, 18230, and 18289. The technical resistance stands at 18580 and 18956. So even if we were to break through to new highs, we are not yet ready for lift off. We can see that the oscillators are not at record highs. Only a weekly closing above 18289 would signal new highs ahead. Breaking above 18000 shows we are pressing higher. So watch the cluster of resistance for now as we move into next week. After this rally peaks, we should then pull back and retest the Downtrend Line in purple in the mid 17500 zone. Building a base above that level will be extremely bullish for the future, but that may be asking too much just yet.
