S+P opens slightly lower today following new all time highs seen yesterday

Yesterday the S+P 500 rose to its highest level ever, when it reached a high at 4,929.31. The index closed not far off that record high too, ending the US session at 4,927.93. It has just reopened a little lower this afternoon, but not materially so. The US data releases, due out at 3pm GMT might have an impact in either direction, depending on what emerges there. Leaving that aside, the current technical position on the S+P is slightly overbought, but not critically so and in that sense there is nothing yet to stop the index rising further. Of course this is all about earnings and we have more of those to come this week. The current P/E ratio on the index is above 23, but it has been higher in recent times. That is not immediately critical, but it will be crucial for future earnings reports to continue to outperform in order to maintain the current momentum. The obvious next target for the index is 5,000, but of course we are already into uncharted territory. Outside of that, there is a technical Mega-long term wave count prognosis that suggests this index could have a lot more in the tank on the topside, but I will reserve looking at that for another time.