I think we'll see the S&P 500 shoot above the 965 level this week. In fact, I wouldn't be surprised if it gapped over that level Monday morning. There's so much bullish talk in the financial news this weekend that I think even more buyers will be sucked in to the buying frenzy. Whether the market can close above that level is a whole different matter.
Here's a look at the weekly S&P 500 chart. The index is trying to follow in the footsteps of the NASDAQ by taking out its 52-week high. It's built a nice year long base, with a range of about 200 points. Some would say that if it can break out of that range it has potential to rise another 200 points. Also note that the stochastic is at 95.5, way into overbought territory.
Here's the daily NASDAQ chart. Note the overbought stochastic, and that it's bumping up against the (orange) uptrend line that was broken in mid-May.
I wouldn't be looking to buy right now based on either of these charts. The black uptrend line on that NASDAQ chart is where I'd be focused for the next potential buying opportunity.
