The broad stock market continues to consolidate in large 20-month basing patterns. After turning down off the top about five weeks ago, stocks appear to have put a higher low in our bases this week.

As we've written before, any higher low in our large bases is a positive. Now that the market has put in reversal candles this week, it's a good time to review some important base-top pivots, or resistance levels, from our weekly charts.

Image placeholder title

Chart Composed by The Informed Trader, courtesy of Stockcharts

As seen above in the chart of the S&P 500 I:GSPC , the index is just below the downtrend line off the recent highs, which comes in near 2100. After that, the all-time high comes into play at 2135. Above that, there is blue sky, meaning a lack of price resistance. Last week the S&P 500 caught support off the daily 200-day exponential moving average near 2025.

Next, lets turn to the Dow Jones Industrial Average I:DJI , which is in a similar 20-month base:

Image placeholder title

Chart Composed by The Informed Trader, courtesy of Stockcharts

The Dow this week also put in a higher low in its 20-month base after a four-week move lower. It's now less than 1% from our base top, which comes in at 18,000. In addition, the all-time high comes in at 18,350. Last week the index caught support off the 200-day exponential moving average.

Next, lets take a big picture look at the weekly chart of the PowerShares QQQ Trust (QQQ) - Get Report , an exchange-traded fund that tracks the Nasdaq 100 index.

Image placeholder title

Chart Composed by The Informed Trader, courtesy of Stockcharts

The PowerShares QQQ Trust has been trading in a whipsaw pattern over the past two years, but it did put in a high lower in the base with this week's reversal candle. That's typically a positive sign. Over the two-year period, both bulls and bears have been relatively equally matched with wild swings, but the higher low is an indication that the bears may be running out of steam. Important resistance comes into play at $110 and then at the $115 all-time high level.

In sum, after basing out for close to two years, the S&P 500, Dow Jones Industrial Average and the Nasdaq 100 all put in higher lows in their bases and are showing reversal candles this week. We are approaching some important big-picture resistance levels. We at The Informed Trader are mildly long but remain cautious until our bases clear with conviction. Let's see how the next few weeks go.

This article is commentary by an independent contributor. At the time of publication, the author held no positions in the stocks mentioned.