S&P 500 Index, 'Subway Tube' daily, possible scenario.
The Index is confined within the 17/5/2013 Channel(blue).
Until it breaks out from this Channel, the trend is your friend, and/or self-similar pattern is your friend in this case, as with the previous wedge like formation breakout, similarly a brakeout could target 1990-2000 on this run, and possibly above, to top of Channel, within the 2nd half of the year.
Index broke out from horizontal resistance through a triangle A(red) breakout, and may has reached its target, currently. Thus, a small correction could ensue,till 1902, so to relieve short term overbought pressure, then a rise to top of wedge formation, in a wave fashion(red). It marginally broke out from a larger ascending triangle B(yellow), which reinforces the bullish case, as well as its support.
The risk is, lower probability, this is a 5 wave ending diagonal, AB=CD (@ 1970), which could retrace to channel support, with risk of breaking down, to the rising 200 sma , 1850, and/or 1740 level.