Well, that was some week for the markets. Basically, the up moves were concentrated in two sessions. Wednesday saw a massive rally on decent turnover, while Friday saw a similar session with strong breadth and other indicators turning decisively bullish. It all means the weekly chart has made its way to the downtrend line from the start of 2022. Indeed, another 15 to 20 points and we'll be right there, a clash of the titans featuring the monster downtrend line, rejected on a couple occasions, versus the surging price from the perceived bottom in mid-June.

This has the makings a battle royale. Will sellers come out and say "that's enough" or will the buyers push through this tough level and make a run toward the highs in January? A good question to be an observer, not a participant!

As for the chart technicals, we see TDI (Traders Dynamic Index) at the bottom has firmly crossed the middle line, and that is another bullish signal. The ultimate oscillator is strong and at nearly overbought levels, while the RSI (Relative Strength Index) weekly is undoubtedly bullish. But the pink candles so far tell us this is a rally to be cautious, and that gives us some pause. While the SAR (stop and reverse) is still bullish (arrow, dots) there is the chance this market could turn back down in the days ahead, even for a brief time.

The S&P 500 500 is up 3.6% so far in August, and after two weeks that is quite large.