50% Retracement now what?

Where do we go from here?

The S&p 500 moved up to the 50% retracement level after the big sell off in March. This is the 2778 level, will we go back down and fill out the double bottom formation that everyone is waiting on or continue to push up, that is the million dollar question. Lets break it down into three possible scenarios.

Scenario #1: Bulls remain in control.

Taking a look at the daily chart of the E-Mini S&P 500 futures contract we can see that price is clearly moving up. In the past 19 days, price has only dipped below the previous day's low 3 times. This signals to us that bears are in control, the 2500 level has clearly turned into a support level, due to the fact it took us 8 days to break and hold above this level.