If stocks have any interest in correcting, they sure aren't acting like it.
After a 9 percent rally that took a break in late July, the market has been in a consolidation pattern, as it gathers steam for another move higher.
The fundamental argument for higher prices remains intact: We have an economy that's showing mild improvement, coupled with a Federal Reserve that has convinced markets that there is nothing to worry about. The Fed has been able to engineer a low-volatility environment across many asset classes, and although it could end badly, the Fed continues to be successful at persuading investors to take more risk.
As to the chart, Monday's rejection of recent trend lows leads me to believe that our next move is toward the upper end of the recent range.
(Read more: Marc Faber: Look out! A 1987-style crash is coming)
So what's my trade?
I am adopting a bullish bias at the current level of 1,690 in the September S&P e-mini futures, with an upside objective of 1,703. A move below 1,682 would convince me I was wrong, and stop me out of the trade.