The S&P 500 is trading at all time highs with some sharp price move up from 2403 that we see as a fifth wave rally, the final part of a five wave recovery from 2345 called an impulse wave*. There are some Fibonacci levels around 2440 that may play an important role for the next few sessions, as we think that upside can be limited and that a new corrective setback could come at the start of June. However, extended fifth waves are very common on stock markets, so do not chase it and call a top until you see a five wave drop from the high.
S&P500, 4h
*Impulse wave is structured by five sub-waves in the direction of a stronger trend. The picture below shows a five wave move to the upside, meaning that price is in an uptrend. When the five move is complete you can expect a three wave set-back.
