S&P 500 is forming a rising wedge as shown in the chart above. (click the picture for a bigger view).
A rising wedge is a generally a bearish chart pattern. But at the mean time, I am still bullish about the market. There is still room for the price to go up and reach the top of the wedge. So, there is a good chance that S&P 500 can hit its former high at about 1,345. By the way, Dow Jones (DJI) is also forming a similar rising wedge pattern.
Once price gets to the resistance, we will have to see the price action and see where the market wants to go. Most likely it will go down from there. Whether the market will crash is another story, which I don’t want to predict.
In short, the current market still has the fuel to go up. Recently the market sentiment is still pretty ok and price action is bullish since the start of the year in 2012. Personally I am vested in the S&P 500 at point of writing.