The S&P 500 has been a wrecking ball, blasting through resistance after resistance over the last two months. In all, the markets are up 15% from their lows in February. A level is now being hit by the $SPY that is more major than many of the last resistance points.
If you connect the highs stretching back to the all-time high on the $SPY from May 2015, it creates a perfect trend line which is now being tagged. Note the chart below. Will this be a level for a pull back? Ultimately, in normal market conditions it would be an epic pull back. However, with the Federal Reserve continuing to wave the white flag and volume remaining near the lowest levels in a decade, it is not as easy to call as usual. Ultimately, as chartists we have to trust the chart and believe a pull back is near.