1/30/2014

US indices saw saw gains of around 1% on Thursday. There is likely going to be an attempt to make it to 1815 on the S&P but I doubt it will break through. We are already seeing a lot of resistance at 1800.

The hourly chart looks poised to move upward again tomorrow, but I'm not sure how much to expect. The bullish advances look weak for once, and we are kind of far from the 1815 S&P levels still. Either way, unless 1815 is broken, I'm not swayed by the upside....and even then I'd still be skeptical. The lows from December still hold as a support point to break for continued declines, after which I will target the S&P 1735-40 levels for confirmation of a push to the 200 day MA.

This current action is most likely the formation of a bear flag on the daily chart. Looking a tiny but more into the future, this could end up as a H&S pattern.

Only the S&P charts below, as the story is largely the same on the other indices.

S&P 500 Daily Chart

S&P 500 Hourly Chart