You have to give a slow clap to whatever that was at the end of the day on Friday, painting the tape, running stops, window dressing, front-running. Whatever it was, it wasn't normal market action. If anyone tells you that is just the normal market. Smack them.
Market Ticker has a great theory on what that was I recommend checking it out.
Hindsight it looks like the market broke out of the small ascending triangle(look at the 60 min chart). Had you just looked at a chart today that's what you would see. But that isn't the case, the market decided to break out with only a few minutes left, which is way the move was nonsensical. Look at the 1 min chart.
Here is the SPX 60 Min chart. You can see the break out of the triangle which looks like a normal break out. Notice the SPX closed right at the descending triangle trendline. The last 2 times it did this the market sold off(3rd time a charm?) The 200MA is getting closer as well, if the market is going to breach this level, it could start another round of buying, since a break of the 200 would be seen as bullish. I perfer the 200 EMA though.
SPX daily closed right at its descending trendline, this could hold as resistance. A breakout above this would send the market at least to its 200MA. SPX is still within it's triangle and needs to breakout/breakdown to give a market direction.
The weekly chart is something to take notice of, it is consolidating and constructing a pennant. A break out of this will be very bullish so a move above 920-930 would be a big break of the pennant, but a break of 880 would be bearish. This has been the range the market has chopped around for the last couple of weeks. Till one of these S/R levels are broken expect a round bound market.
Since Friday was the end of the month, it is a good thing to look at the monthly chart. This chart looks bullish but it is a longer-time frame and anything can happen.
