My view is that the S&P will complete the break and extend pattern from the October highs @ 1174 and into the December highs 1249-1252, and then go looking for the weekly lows later in December or early January.
Previous Weekly report
S&P Monthly and Weekly Range:- Dilernia Model
We can see the S&P reach the December highs and likely continue towards the January highs in the first Quarter of 2011.
However, the ideal pattern to capture the continuation of the UP trend would be to see the S&P revisit the weekly lows, which have now crept upwards and are currently @ 1222
The DOW will mimic the same patterns as the S&P, but it hasn't reached those same December highs @ 11593, therefore we have the S&P consolidating around the highs waiting for the DOW to complete the same pattern.
Therefore the trend in the S&P can continue up towards next week's highs...
and if the S&P is going to move down into the Weekly lows, then the first sign will be a daily close below 1248.