S&P made a high of 1574 and failed to cross 1576-1577. On Friday, due to job report markets declined. S&P hit the strong support level of 1540 and closed at 1553. Once again S&P is trapped between support and resistance. Support being 1540 and resistance being 1565, 1574, 1577.
Out of all the Index charts I went through to see what the markets did on Friday, I liked Transportation Index to be the best. It looks like Dow Jones Transportation Index rallied after bottoming at 5878 and this is good news. Next few days are important as earnings season is starting. Since companies have lowered their guidance previously, therefore, the beat in earnings will be taken as positive for the market. However, market has done some damage last week and it must recover fast and undo the damage.
Chart of Transportation Index shown.