2/24/2014

Monday finally saw the S&P 500 break the elusive 1850 level. The catch, however, is that Monday's close was below this level - however, that still makes for an 11 point gain.

It's definitely easy, and somewhat rational to consider the potential that this is still a topping pattern. However, considering how strong 1850 has been, and how long trading took place above it, I think it was a bullish symbol. The S&P daily chart looks like a completed bull flag.

I'm bringing my next key resistance down from 1870 to 1865, as the weekly bollinger band is now at this level. Looking at the hourly, daily and weekly cycles, none can really be called overbought, and the super-small time frames are pretty much oversold.

The whole week really comes into play here. That chart will look very bullish if this week closes above 1850. I'm expecting we open above that on Tuesday.

S&P 500 Daily Chart

S&P 500 Hourly Chart