2/20/2014

Thursday saw a significant portion of Wednesday's losses taken back with some force. After clearing the 1835 threshold (which seemed to take a bit of effort), we were back up at 1840. Aside from minor breaks above it today, 1840 still needs to be cleared.

S&P futures continued to rally after the close, and if the sentiment keeps up then we might see a pretty high open on Friday. If 1850 gets cleared, I am still using the weekly Bollinger Bands as a target of 1870. None of the three charts below are in overbought territory - in fact, they appear to be in the process of completing a cycle up towards that area.

Also, the channel from November 2012 is obviously still in play.

I'm still keeping in mind the possibility of a double top, so 1850 will really be key. If, for some reason, we break lower, we should see support around 1820/1825 and then 1815.

S&P 500 Daily Chart

S&P 500 Hourly Chart

S&P 500 Weekly Chart