On a 30 minute timeframe, the broad market broke out this morning. As you can see on an updated 30 minute chart of the actively traded ETF for the S&P 500, $SPY, the symmetrical triangle that had been forming over the past week or so resolved to the upside today. At issue now is whether that breakout will hold. We have already seen roughly half of the move faded today, yet the breakout point has remained true. On the $SPY, you are looking to see if 118.70 holds as support now, after acting as tough resistance last Friday. On the S&P itself, you are looking at 1185 to hold.
If the breakout point fails to hold, it does not necessarily mean that the bears have regained the upper hand. Instead, it simply means that the market has rejected a breakout for now, and more choppy, sideways action could be in the cards. Either way, you would be remiss to not pay close attention to those levels.
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