Although this could break out and keep going, I have held the thought that this is just a short squeeze within the context of a broad trading range from 1100 to 1220. It should be noted that the futures tend to be a little 'sloppy.' These moves up and down in a broad channel are what is known as a 'wash and rinse' or 'wax on, wax off.'
There is a potential triple top at 1215.
If the futures can break and hold 1230 then we might see a more sustained bull market leg, but I have trouble seeing that until the European debt situation is resolved.
However it is possible. And since the Fed begins its bond purchases to implement 'Operation Twist' this week we may see some new liquidity providing an impetus for stocks, and some perception management activity as well.
Be careful of the short side until the trend breaks.
