I posted a chart on twitter late yesterday which has had over 1500 hits so far, and it's the most important chart to look at today. That chart is the SPX 15min chart which is showing the possible IHS that may be forming at the 1387.5 area neckline with a target on the 1417 area. Yesterday was a trend day, and that's generally followed by a consolidation day, and that consolidation may now form a right shoulder on this pattern. If that forms and the neckline breaks up, then historically these IHSes on SPX generally make the target. I've marked in a possible path within the nice little rising channel that has formed from the low.
There are two other things to note from this chart however. The first is that the high yesterday hit the strong resistance area that I was highlighting yesterday morning, and that area is obviously still strong resistance. The second is that there was negative RSI divergence from overbought on the ES 15min chart at the close yesterday. I mentioned yesterday morning that if the downtrend was to continue then this rally would most likely fail the next time we saw this. I'll be watching that rising channel support on the SPX 15min today:
