Currently, on Friday, Dec. 5, 2008, the S&P 500 is at 876, and is very near many resistance levels.
- Horizontal Resistance: Around 900 to 916
- 3 Month Downtrend Resistance: Around 879
- 50 Day Moving Average Resistance: 936
If Stock Market breaks through these resistance areas with good volume, there's a good chance the rally continues to at least 1000 to 1040 on S&P 500.
Otherwise, the S&P 500 could continue its downtrend.
We can also pay attention to any big gap up at the open, followed by a high volume reversal to the downside to end the day down. This could mark a failed attempt to breach resistance.
Today's S&P 500 Chart