Since our last market overview on March 10, we had three days of rest before closing at new 16-month highs.  Although, we feel that the market is “overbought” in the short term, with a few days of rest and sector rotation, the S&P futures can continue to move higher.  In the illustration below, we look more macro at a pattern that we have followed since last July.

Below is a weekly chart of the S&P Futures (ES), notice the inverse head and shoulders pattern, which we labeled.  The neckline in this pattern was broken on 7/23/09.

We measured the distance from the head (March ‘09 lows) to the break of the neckline.  The measured move takes us to 1247.00 on the S&P Futures contract.  The first area of resistance is not until the 1250 area.