S&P 500's 'triangle pattern' points to more gains

Traders work on the floor of the New York Stock Exchange.
Brendan McDermid | Reuters

The S&P 500 is bucking against its all-time high, and JP Morgan analysts say a bullish chart pattern and still-easy Fed increase the odds the rally will continue in the weeks ahead.

They say that after two months of "coiling" below the 2,120 February all-time high, the S&P is trying to break out, and a bullish triangle consolidation pattern repeatedly held key support at the 2,040 March 11 low and at 2,034, a key 61.8 percent Fibonacci retracement level widely followed by chart analysts.

That puts 2,200 in sight. "The Feb-Apr triangle pattern breakout has a 2191 objective," they wrote.