Dessert or Disaster?

As you'll see in the chart below, the S&P futures continue to hug the 50% line. While the bulls are looking to put the icing on the cake for a solid 2009, the bears are looking to start the long awaited disaster of a correction. Given that scenario, the fact that prices are stuck dead in the middle should come as little surprise, but something will soon have to give...


I'm looking for the Nasdaq to lead the charge higher and this is as good a spot as any to bounce higher. On the contrary, a breakdown could get ugly rather quickly should the 5 dma and the 2200 level fail to hold...


The S&P still hasn't been able to breakout above this channel, but let's see if prices can bounce from here tomorrow...


The DOW was the only index to close below the rising 5 day moving average and has been the laggard of late...

Looking at the $VIX, it certainly appears ready to break down which would coincide with higher equity prices...

I've got a few more charts to put on your radar just in case we do get a breakout. Of note, nearly all of the charts from Sunday's Pattern Watch post have confirmed and popped higher. This is usually a good sign for higher equities as leadership is doing what it's supposed to do... lead! Here are a few more to keep an eye on...

BUCY - Imminent Breakout

HMIN - Inverse Head & Shoulders as Continuation Pattern

VPRT - Bull Flag

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