Yesterday we arguably saw most of the last short-stop levels taken out. There really can't be that many bears left for the algo-bots to kick out. It sure looks like they are battling it out this morning. The bulls are trying to stay above sp'1400/dow 13k, whilst the bears are desperate to at least close today marginally red. Perhaps we can see more heavier volume as the day progresses.
Whilst the market currently churns with only moderate moves up and down, lets look at the daily cycle outlooks.
SP, daily - bearish outlook
SP' daily - bullish outlook
There is no question about it, right now, the bulls ARE in control, but they are at a level where it could quickly fall to pieces. The bearish H/S chart noted above is pretty interesting, and we'll know soon enough if its just another failed outlook.
The bullish outlook indeed seeks at least a moderately higher high above 1422, although it does not necessarily have to be too much. I see plenty of good chartists out there suggesting sp'1450/60/70 as the peak in the next few weeks.
It remains a tricky situation, at what is a very key battle zone of SP'1400..
For the 'serious money', bears short-stop level would be 1405/10...and the bulls 1395/90.