trading pattern on the S&P 500 index suggests strongly that the market could be in an early stage of establishing a near-term high and that short-term condition is ripe for some short of pullback consolidation. However, as long as the S&P holds above the February trend-line, the coming correction might be just another blip in the multi-month rally, which will help setup a much more potent buying opportunity

the S&P appeared to have established an important near-term low on its most recent downturn. After eclipsing minor resistance at 1083, the next level that traders will be watching is 1103. A sustain breakout above that level should send short sellers scrambling hence, opening up for a test the January high of 1150. And an abrupt downside reversal from that level, meanwhile, will raise the odds for a retest of February low of 1044.

based upon recent trading action, the S&P 500 index is trying to breakout from the 2-month trading range and all it needs is a right catalyst. On the technical side, the bulls definitely want to see a clear breakout above the 1120 level. And on the fundamental side, recent trading actions in equities and currency markets are telling us that investors are now banking on an accelerating recovery, so any positive surprises in the upcoming retail and labor data will have the potential to push the tape to new recovery high.

recent trading action suggested strongly that the stage is set for a sizable bounce in stocks; begin with a test of the broken support turned into resistance at the 1060 level on the S&P 500 index.

patterns in the chart of gold suggested that gold could climb another 30% higher following this week’s breakout. General speaking, investors are turning to gold when they’re bearish on stocks. With that said, rising gold price is bad for the stocks because it could restrain the market from going higher.