2/21/2014

On Friday, the market started a bit strong, but eventually ended the day red. The daily chart on the S&P 500 is showing a bull flag that looks to still be forming. I wouldn't be surprised if Monday goes slightly red as well.

The S&P 500 could still be making a double top. Other indices look to be forming different patterns. The Nasdaq has already broken its high from January, but the Dow Jones Industrial, the Dow Transportation Average, and the Russell 2000 are all much farther from new highs than the S&P. It would be a weird neckline, but the Dow Industrial is starting to look a little head and shoulder-ey.

If Monday ends up being green, then I've got continued reason to expect more upside, but right now a reversal needs to be constantly considered.

The current trading range on the S&P appears to be between the recent low of 1824 to the 1848-1850 area. Either of these being solidly broken should lead to more movement
in that direction.

S&P 500 Daily Chart