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By Lawrence G. McMillan

The stock market remains volatile, but it has generally been rising since establishing lows near 1,120 on the Standard & Poor’s 500 Index nearly a month ago. The rise certainly hasn’t been uniform, though.

Fridays have been particularly nasty days, with heavy selling the last three weeks, and that usually spills over into the first trading day of the next week. Strong rallies have emanated from there, and then the process repeats. This past Monday, The S&P 500 SPX +0.78%  fell below the critical 1,140 level — which was not only a support level, but also the bottom of the channel that we talked about last week. Had the market closed below there, it would have been a very negative formation.

But the bulls managed to rally the market, closing above that crucial level on Monday, and then following through with rallies the next two days. As a result, sentiment is shifting back to the bullish side, and targets near the top of the channel — SPX 1,240 to 1,260 — are feasible...

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