Last week, we were asking a simple question:

Dead Cat Bounce or Real Recovery?

At the time, the S&P 500 had bounced sharply after breaking below the rising wedge and losing the double-top neckline. The bearish setup was still in play, but the market had begun fighting back.

This week, the picture has changed.

The S&P 500 pushed higher, reclaimed the broken rising trendline, and moved back above the key Fibonacci retracement levels from the recent selloff.

The 0.5 retracement around 7,457 and the 0.618 level around 7,495 have now been reclaimed, with price pushing toward the previous high around 7,620.

This is an important development.

The bounce is no longer looking like a simple dead-cat bounce. Bulls have regained significant momentum and are now challenging the highs that previously created the double-top setup.

What I'm Watching This Week

Now the question is whether bulls can take the next step.

A sustained move through the previous high would put the double-top setup under serious pressure and could signal that the bearish structure we were tracking has failed.

But if price is rejected near the highs, we could still see another pullback and a retest of the recent breakout area.

Last week, we asked: Dead Cat Bounce or Real Recovery?

This week, the bulls are starting to answer that question.

Now we watch to see if they can break through the highs and prove this recovery has legs.

Price will decide.

Not Financial Advice. This is my technical analysis based on price action and chart structure.