It was a day of consolidation in the markets. Since what I had posted last week still holds true and I am feeling kinda lazy, I am just going to quote from what I wrote after the big rally last week. The momentum now lies firmly with the bulls. Add to that the disheartened bears and there couldn't be a better chance for the bulls to take over 1340. As can be seen in the chart below, its been THE resistance level on S&P for quite some time now. However, I would not like the bulls to take it down straight away, and in the process, get exhausted, and give it up back again. Some consolidation here would do their case no harm.
Here is an updated weekly chart of S&P illustrating the importance of this level.
I will be back with some charts later in the night.
Take care and good luck!