If we look at the daily chart, we see that we are currently at a new maximum. It is also quite obvious where the plunge caused by the COVID pandemic took place. Be that as it may, the S&P500 quickly gained momentum and started growing back to its former glory. Currently, the S&P500 is holding the trend, and whenever there is a slump, it is immediately followed by a new high.
Whether this state of the chart reflects the real state of the economy is worth considering. For me, the daily chart is unsustainable in the long term and is held mainly by the Fed's policy. The trend is your friend until the end, so as long as we keep the lower trend, I would still go long. However, one day there will be another slump deviating the price from trend only this time, the drawn up will not be as quick.
The Nasdaq is a technology index, which I think currently looks even worse. It has also recovered very quickly after the COVID, then formed a triangle formation, and has been growing under a very sharp trend for a long time. Also, the only thing that keeps the NASDAQ in such a state is the trend. Shares of technology companies have been among the most promising recently. Shares like Amazon, Apple, Facebook, or Netflix were left almost unscathed by COVID or even came out stronger than before.
However, if we look at the last growth, we see that its angle is increasing. Even in this case, the trend is your friend until the end, but it is obvious here too that one severe price plunge is what keeps the current trend on NASDAQ from ending. Because at a current angle of growth, the Nasdaq will not last long.
At this point, we can see that both S&P500 and NASDAQ are still in good shape, but we can already see some weaknesses, especially in the Dow Jones index. Which we will analyze next week. The only thing that keeps the indices in such growth and their price so high is the policy of the Fed and the trend. However, once the indices fall through the trends, it will get serious.