S&P 500 is showing constructive price action after a technically meaningful rebound. The key development is yesterday’s session, which printed a clear hammer formation, or pin bar if you prefer that terminology. The candle shows strong rejection of lower levels and an intraday shift in control back toward buyers.
The location of that hammer is crucial. The formation appeared exactly on a long-term ascending trendline connecting the major lows since 2025. This is not a random bounce. It is a reaction from structural support, which increases the technical weight of the signal. When a bullish rejection forms at a long-term trendline, it often marks at least a short- to medium-term reversal point.
Today, we are seeing follow-through, with futures continuing higher during the European session. This confirms that the hammer was not just a one-session anomaly but the beginning of a recovery attempt.
From a technical perspective, the next target sits at the upper blue resistance line, which connects the sequence of lower highs established in 2026. That line defines the current corrective ceiling within the broader uptrend. Given the strength of the bounce and the clear defense of long-term support, the probability of reaching that resistance zone is meaningful.
For now, sentiment remains positive. As long as the index holds above the long-term trendline, the bullish scenario stays intact and the path of least resistance points higher toward the 2026 lower-high resistance line.