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After the breakout above 1100 SPX, the stock indices are getting closer to the inverted H&S target area originally anticipated by Carl Futia and summarized in this post.
Some negative news on jobs (Weekly Jobless claims rose to 460,000) seems have caused a pause in the bull run. This mild correction may last through the middle of next week. Volatility, as measured by the VIX, has dropped substantially, which may indicate that the correction will take us back toward the old resistance level of 1130.
From that level, so long as the market remains confident in Quantitative Easing and POMO auctions, the bull market in equities is likely to continue.
SPX to test red line?
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