Last week's strong earnings reports gave the S&P 500 the fuel for a sharp bounce.

After the rising wedge breakdown and the subsequent neckline break, the market dropped sharply before buyers stepped back in and pushed price back above the neckline.

Now we're seeing a strong recovery attempt.

But the big question is: Is this a true V-shaped recovery, or simply a dead-cat bounce?

The bounce has been impressive, but the S&P 500 still needs to prove that buyers have regained control. The market is now approaching the area where the previous breakdown occurred, making this a critical test for the bulls.

If buyers can reclaim and hold above that resistance, the bearish setup will begin to weaken and the recovery could continue.

But if the bounce gets rejected, it could show that the recent move higher was simply a relief rally following the selloff and the bearish structure could come back into focus.

For now, I'm watching closely. Last week's earnings may have given the market the fuel for the bounce, but price action will decide whether this is a real recovery or just a dead-cat bounce.

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