I have been discussing over the last couple of months the potential resolution of the consolidation pattern that has confined the markets to a fairly narrow trading range, to wit:  

“Despite the recent weakness seen since the beginning of this year, the market has remained solidly in its uptrend that began in December of 2013.  Since that time, the markets have proceeded in one of the longest stretches in history without a 10% correction or more. This is abnormal by any measure and has been a function of investor exuberance and continued hopes of ongoing Central Bank interventions globally.

The daily chart of the S&P 500 below clearly shows that the 150-day moving average has formulated the underlying support of the current bull trend. The break of that support this past October should have culminated in a much bigger decline. However, that V-shaped recovery back into the bull trend, spurred by Federal Reserve member Bullard’s comments and Japan’s expansion of its QE program, kept the overall momentum alive.”

…..read much more HERE