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.