The new all-time highs make for GREAT headlines but context is always king, especially when examining the markets with the last 18 months being no exception.
What exactly am I saying? Let's review the last few times the S&P climbed to fresh territory. Notice how it quickly became a graveyard for the buyers that finally decided it was time to add some risk to their portfolios.
Can you see the distinction in how Price behaved when it crossed the previous all-time highs? If we take a closer look at the 60 minute S&P as opposed to the Daily chart we can essentially look under the hood and gain a different perspective.
Notice how its stair-stepping as opposed to poking its head above and getting smacked down very quickly. This doesn't necessarily mean it will go to 4,000 or that the market may decide the valuations are too steep to justify BUT it does mean that we can feel more confident that the buying is more consistent than the previous "NEW All-Time Highs" headline numbers.
At the end of the day, this is simply a signpost that helps us as investors gain a better feel for where the risk should be allocated and whether we can manage that risk more effectively. Does that make sense? If you want to learn more reach out and we can help clarify the principles behind fundamentally sound investing.