What will it take for Stocks to Break Out??

Stocks have retraced a bit from relative highs. The Kovach OBV is strong but has leveled off suggesting that we could range a bit at current levels. It is highly likely that the S&P will form some sort of consolidation pattern, either a wedge, flag or sideways continuation before the breakout. The retracement was paltry with respect to our expectations. The level 3909 seems reasonable if we dip further. If not, there is 3937. Look to the open for signs of momentum, and watch 3987 for resistance. if we see a lot of buying at this level then we can expect a breakout.