S&P fast approaching short-term resistance
A huge relief rally on Wednesday is following up the Bullish reversal from Tuesday. So the question is, what kind of legs does this rally have? I image that “fundamental” news will determine the speed and direction of the move from here, but from a technical perspective, the S&P is fast approaching short term resistance. The hourly chart of the S&P futures (/ES) shows us rapidly approaching a resistance trendline that extends downward from the 5/1 high, through the brief late-May rally. The trendline was only tested a couple of times, but it may be worth noting.
It will also be interesting to see where volume ends up for the day. Tuesday’s rally was on very little volume. Better volume on Wednesday lend legitimacy to the rally.