I’m holding onto my longs but waiting to buy anything new.

This week’s trading left smiles on bull’s faces as prices rebounded and closed near or on highs every day. The rally is still on and earnings are producing all time highs. A main hesitation keeping me cautious is that the S&P is trading at resistance levels.

Here are some charts:

The S&P 500 - Price Analysis

Above, 1 shows the major drop on Friday (-1.6%) and 2 points out this last week of trading (+2.1%). Here you can see how each day this week closed on/near the highs after being down pretty significantly at some point. This, along with the above average volume each day is a very bullish characteristic.

S&P 500 - Resistance Line

This chart illustrates how prices have reached resistance levels. There are a couple of possibilities as far a future price movements.

First, we could see a pullback that many investors have been anticipating for a while now. The markets have gone almost 3 months and over 14% of gains since the last pullback. Second, the S&P could keep on rocking along the line.

If I’ve learned anything this year, it’s that the rally will outlast anyone’s projections and the only way to play this is to ride the wave.