Here we go again. After a series of marginally down days, the Bulls have pushed U.S. markets back to trendline resistance that dates back to the 2007 top.
The S&P (SPX) has a long term "pennant" pattern, and is pushing against the upper resistance of that pattern.
Nasdaq (ETF: QQQ) has a rising wedge pattern, and is pushing against the upper resistance of that pattern.
The financial sector (ETF: XLF) is also testing a resistance trendline dating back to late 2006.
These challenges have been playing out for a couple of weeks now, but I expect that the resolution of these challenges will set the market direction for a least the next quarter, and maybe much longer.