The Dow's first new high since January, just as the S&P 500 scored another record, is one of a number of positive signs that the bull market still has legs and could be setting up for a breakout, technical analysts say.
Stocks surged Thursday as investors pushed aside worries about trade tensions between the U.S. and China, and viewed the latest round of tariffs as less painful for the economy than expected.
At the same time, there are a handful of technical signals that make strategists believe the market could be at the beginning of another push higher.
Of course, there are headwinds that could disrupt this move, including the potential for more escalation in trade wars and rising interest rates. Some strategists are concerned about the divergence between the U.S. and other global markets.
But technicians do see a group of positive trends converging, even though September is usually the worst time for stocks and October has not always been much better.