2/10/2014

Price action on Monday was pretty muted maintaining a range between 1790 and 1798, however a push right up to S&P 1800 did occur towards the end of the day. Based on the daily and weekly charts, I do believe we will see continued upside...maybe test the current top. Tomorrow, however, may open a bit low. The smaller time frames look really overbought.

If that happens, it probably won't last very long and we will start making our way to 1815 on the S&P 500. Technically, the previous high of 1798.77 was broken and closed above, which could be the telling sign of more upward momentum. On the weekly charts below, I tried to draw channels that were on a closing basis as much as possible. On the S&P 500 and Dow this seems to solidify the trend - on the Nasdaq and R2k, it's a little more iffy.

Since the close on Monday, futures for the S&P 500 have continued to climb, +4.7 points as of this writing. We have, however, seen how this can change overnight.

S&P 500 Daily Chart

S&P 500 Weekly Chart

Dow Jones Industrial Average Weekly Chart