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The S&P500 : A Notable Potential Chart Pattern

For many reasons I currently believe that the near-term direction of the stock market is "up."

The below chart shows what may be a large C&H (Cup & Handle) chart pattern, denoted by the bright green line at the 1220-level.   While the price action may not exactly satisfy the requirements for  a classic C&H pattern, the behavior seems to.  As such, I view it as an important consideration, one that would seem to support further strong price appreciation, at least in the short-term:

While I have written of my expectation of a rising stock market since my June 2 article, that is not to say I think this advance is sustainable.  I continue to believe that we have been experiencing a strong "bear market" rally since the low of March 2009, and that another crash in the future is certain.

Disclosure: no positions in the S&P500