The Mondays

After a run up on fumes last week the market nears resistance which can be broken at the hit of any HFT computer button.  We now head into earning season which if the earnings beat expectations would be a perfect excuse to run the market up.  We could have a summer like last year. Below is the chart of last year when the head and shoulders pattern failed and the market rallied into November. 

The pattern looks similar to this years failed head and shoulders pattern, although this summers price action is slightly different, with SPX having an established downtrend, a bearish cross of the moving averages and significant overhead resistance.   Watch the top of the channel for a indication of where the market may go.  Resistance is at 1080-1090.