New All Time Highs For The Stock Market – What Matters Now?

All time highs without a worry in this world.

It really is impressive how the market will rebound every time from even the smallest of sell-offs to hit new all-time highs, time and time again. There is a lot of risk out there – tons of it. Despite all the horrible headlines that could readily be seized by the bears, the market persists at an onslaught of new and regular all-time highs.

The S&P 500 broke out of a Darvas Box pattern as you can see in the chart below. Unlike last month, if the bulls want this rally to continue, it needs to follow through today, or at the very least not give up all of Friday’s gains. If that were to happen, then it would put SPX back into the sideways trading pattern that has captured the market over the last two months. The strongest of the indices remains the Dow Jones 30.

You have earnings that are in full swing this week and could shake things up a bit. Watch for more of the bank earnings come Tuesday morning and Netflix (NFLX) that reports after the bell today as an indication of how the FANG stocks are likely to perform.

Above all, don’t get yourself over leveraged in this “feels-safe” trading environment, because it is this very kind of environment that can completely surprise traders.