(click image to enlarge chart)
The S&P Futures contract (ES) achieved a trend channel breakout on 1/8/10. The (now broken) trend channel top rail is represented by a dotted green line in the chart image above. That VST trend channel had contained price action since October 2009. The yellow highlight in the chart above shows where the upside breakout occurred.
The ideal entry for the present push higher was at the back-test of the triangle breakout mentioned on the January 1, 2010 post at:
It is too early to define a new trend channel, but I have placed the least aggressive bullish possibility on the chart using purple lines. The tentative channel top is a parallel to the VST support trendline (also purple).
If a pullback occurs, we could see one or more of the trend lines on the chart act as a magnet. For now, the lines of immediate interest are the top rail of the purple trend channel and the broken October VST trend channel (dotted green line in chart above) and then the bottom of the purple channel.
Bulls remain firmly in control above the Stops & Targets short-term primary trend support number currently at 1117.25, which lines up with the dashed black trend line on the chart above.