The chart below is of the S&P 500 Index. The index has broken back above its 50 day moving average, but it is also approaching the bottom channel line from the previous short term trend. This will be an important area to watch. If the index can re-establish its previous channel, the market could continue to churn higher. However, most times after the market has broken down out of a previous channel, it will rally and "kiss" the bottom of the channel before going lower. The 50 and 200 day moving averages should act as areas of support if the market decides to test its lower levels. 1500.43 and 1476.76 and then 1453 should be important areas.
This week with the Federal Reserve announcing its decision on interest rates on Wednesday, the market should prove one way or another if it can re-establish its previous channel.
S&P 500 Index
Below the chart of the Nasdaq Composite shows that it is still in its channel. The high close is 2811. The market has traded above this number multiple times, but a new close above this number should gain some attention. It is important to watch the volume associated with any new highs.
Nasdaq Composite Index
Dow Jones Industrial Average