The S&P500 closed the day up after Bernanke's speech on Friday, trading within the range established between 1100 and 1200. The last two attempts to break out were met with price rejections driving the index back down. The selling however was on much lighter volume. The clear long signal will arrive if the index can trade above 1200 on clearly higher volume.

However, the nature of the triangular pattern is often a continuation pattern, so it does point towards the possibility of an aggressive shakeout before a real rally occurs. That will be a comfortable area to load up and go heavy long.

For now, the market seems likely to trade within the triangle on light rallies until the next catalyst comes along.

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