S&P Monthly chart is one of my favorite trend checkers you should keep on tap. You can see the devastating bear market, which lasted over a year, wiping out a decade of 401k growth. Then after the post "V" bottom correction we had a bull run for the ages. Q/E, free money for businesses, low interest rates for consumers, etc.
So how long can it last? Looking at the monthly chart we clearly see the sideways markets since October of 2014. We've broken above that the last 3 months but all of the gain occurred in the first month. Since that breakout month to all time highs we've consolidated at or below those highs, so the jury is out on longer term trend. It would be troublesome to see us lose the breakout month gains because it would give a fairly easy right shoulder pattern with the left shoulder established between October '14 to June this year. The head would then become these last 3 months.
Or do we break this 3 month resistance signaling yet another bull run for the ages? If there is trouble would there be Q/E available again? Free money for business is not a sustainable economic model so interest rates must head higher at some point.
So now we are at condition yellow. And why wouldn't we be? The sideways market has given an opportunity to actually move into a nice comfy position above the fray. The max "missed out" is a couple hundred points if the markets break out. If we break down then we literally plucked the golden apple off the top of the tree. Who can't love that?