Two weeks ago we observed that the composite weekly cycle is flatlining, and that the SP500 should bottom out soon. That proved to be the case, and the index is currently racing towards the top of the channel.
In order to get there, however, it will first need to break out above the inner weekly triangle:
By both acounts, the next resistance level is around 1300, while first support is at 1220.
From a sentiment point of view, bullishness is still prevailing, after dipping shortly below 50% a couple of weeks ago. Despite the constant barrage of news coming out of the financial sector and Europe, market internals continued their normal ebb and flow, and appear to be bottoming out, just in time for a year-end rally.
The CIT Dates calendar on my blog had December 8th marked as a potential turning point. The next date of interest is December 15th.