Nice move! But no Follow Through Day.

Watching volume is very important for this rally as a drying out of buyers will pave the way for short setups.

Moving averages act like magnets for prices. We suspect the S&P 500 is on its way to hitting to that resistance. (See blue line in chart above.)

But all bets are off if we get a Follow Through Day (FTD), which will come with a major rally of 3% to 4% on volume greater than the day before.

This would tell us that institutions are taking bets to the long side.

We never want to bet against the institutions.