If you look at a 60-minute chart of the S&P, you will see the market has bounced around in a descending channel in recent weeks. Traders have had very little success with multi-day trades as the more nimble short term traders have taken consistent profits. Focus on smaller time frames right now. Many are asking whether the market will head higher or lower, but that should not be the focus until we get some sort of follow through move in either direction. The gap up this morning puts us back near the upper trendline of the channel, so we could likely see another fade back into the middle of the range despite stellar earnings so far from Goldman Sachs (GS) and Intel (INTC)

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