The S&P closed yesterday at a new 2009 high of 1052.63 - which is roughly where the futures are now.  Since the futures had declined after the close yesterday, and have since shown a steady uptrend in the overnight, I would expect things to point to higher open this morning.

Surprisingly I have little to say about where we are right now.  The last serious resistance line that I can see for awhile at 1044 has been breached, and theoretically could mean smooth sailing for the next 50-60 points upward or so (kiss of death, of course).

Here's a chart showing the clear uptrend - since the July low it's been higher highs - higher lows:

S&P 500 - Daily Chart - 3 Months

All of my usual indicators are supporting the idea of the uptrend - price is on above the moving averages, and the moving averages are all in the proper uptrend order (shorter MAs above the longer MAs).  MACD has turned upward, after having a downward slope since the beginning of August.  Even the MACD-H is in bullish territory and rising.   There is the bearish divergence that I spoke of last week to consider, but this market has tended to ignore such occurences these past 6 months, so while I'm not going to forget about it, I'm not going to give it a whole lot of weight right now either (kiss of death).

Look at the last MACD-H up impulse at the last couple of weeks of August - see how the maximum barely got above the center 0 line?  The current bull impulse is already much higher, and started from deeper in bear territory - so that tells me that this time around is stronger than last time - and that justifies the higher prices.  Ideally, of course, I want to see the level of the MACD-H get above the high it reached at the end of July - but that also gives something to aim for.

The only thing that surprises me a bit is that volume hasn't markedly picked up after Labor Day - although in the 6 trading days since Labor Day, 4 of the 6 days were above vol 45ma (the 45 day moving average of volume) on up days - so that shouldn't be discounted either.

The 1044 area did serve as a bit of resistance (on the intraday charts, at least - on the daily chart it shows up as the doji three days ago) - so I would look toward that for support on a pullback, but otherwise, I see no reason not to be on the side of the bulls - at least up until above 1100.  

In the back of my mind I still have an ultimate downward bias, but the charts and price action are telling me that the bulls are still dominant - and have further room to run.  And there's no reason to argue with that if there's money to be made by joining their side.

Good Luck!