S&P 500 - have we passed the bottom? what can we see from the technicals?

S&P ended the trading day of 24 May 2022 with a +1.86% to close at 3,973.75.  It was up from the recent low of 3,900.

1D chart of S&P500

Using the technical indicators, there are signs of possible reversal but both stochastic and MACD indicators have yet to confirm a reversal as we seek a clear cross over at the bottom.  Looking at the volume, 24 May 2022 closed with a much lower volume of 2.38B compared to the average of 4.18B daily volume.  Though there was much lower trading volume with most buying, this led to the rally of 72 points.

Despite the rally, the lack of volume implies that the strength of this may not be "strong".  Volume indicates the "strength" of the trend.

Technical analysis of S&P500 1D chart

From the technical analysis, the moving averages (both simple and exponential) show a short term "buy" but overall, 9 out of 12 moving averages (75%) still indicate a "sell" market.  Looking at the other technical indicators, 7 out of the 9 indicators show a "Strong Sell" market.

The market is "expected" to rally over the course of the few days barring any negative macro news.  But I am paying close attention to the support range of 4080 to 4120.  The reversal would need to break this resistance level to give more assurance of a breakout.  With every up, it would be followed by a down.  The key support that I am looking for is 3,900.  It will get slippery once this is challenged.  S&P enters bear territory when the price falls 20% from its recent high of 4,818.  3,854 will be the watermark for bear territory for S&P500.

One day does not make a trend.  With the market remaining nervy, the market is likely to remain volatile.  Personally, it is a good time to continue to identify great companies' fair value (with a good margin of safety factored in).  When both market and price are in our favour, let us take our trades strongly.  Currently, I will be observing more than buying.  As always, let us research before investing.