1/14/2014

After the 1.20ish percent decline that occurred on Monday, Tuesday's open on the S&P bounced upward with great force, almost completely wiping away Monday's losses.

The channel on the weekly chart appears to have been what provided the support for Monday's decline. 1815 is right where the current upward channel from last October was sitting. I'd say that's pretty encouraging for the bullish side as it most likely means Monday saw the low for the week.

I'm also attempting to (finally) utilize Elliot Wave Theory in my analysis, so the counts will be showing up. The daily cycles fit in nicely within the weekly right now, and it appears a new impulse wave is forming.

Tomorrow should ideally generate new historic highs with the momentum this breakout appears to have. A realistic target is between 1850 and 1860, but above 1860 might have a chance. This next wave up could see 1880 or so before another correction.

S&P 500 Daily Chart

S&P 500 Weekly Chart