Third Bullish Signal - How Long Do Market Rallies Last Afterwards?
How Long Can Market Upward Trends Sustain? - A Comprehensive Study
In April, I published two special editions highlighting rare bullish signals that occurred during that month. Both signals have since formed the core of my bullish market stance, as the events studied have consistently preceded "quick-buy-the-dip" seasons, much like the one we've witnessed. Two months have now passed since the market bottomed, beginning the second week of April, and it has since achieved a V-shaped bounce. As of today, the S&P 500 has cumulatively bounced 25%, the Nasdaq 100 33%, Small Caps (IWM) 25%, the Dow Jones 18%, and the Semiconductors ETF (SMH) 56%. All these securities, along with individual stocks, metals, and Bitcoin, are analyzed weekly across the three premium publications.
You can access the publications analyzing the rare bullish signals here, the market research studies in real time alone are worth the subscription, upgrade to paid now!
Today’s edition presents another stock market study, considering the V-shaped bounce mentioned, the cumulated 20%+ gain so far in a short period of time, and the potential top formation that the major indicators are suggesting, as the NDX, which reversed with precision from the immediate bullish target for the week $22,036 shared in the latest Weekly Compass. For access, click here.
Be mindful of the support and resistance levels that are contained in the volume shelf highlighted by the black double-arrow, where the 20DMA is also located, and let’s be mindful of the imminent bullish crossover between 50 and 200 moving averages.
The bearish divergence with RSI and the latest candle suggest the 5 moving average could be penetrated tomorrow; anyway the central level for the week is $21,617.7, so nothing is confirmed until that level is breached.
(The central level for all the securities mentioned were presented in the latest Support and Resistance Levels edition. click here.)
SPX - What’s Next?
Today, we will analyze the structure of the recent market bounce, assess the odds of a bearish reversal, and explore the S&P 500's prospects for the coming months based on the third rare bullish signal that was just confirmed. This is a must-read, as a healthy pullback would likely trigger bearish sentiment, creating significant noise from the gaps left behind (below) across both the stock market and crypto space.
If you're a new subscriber, the following publication summarizes the S&P 500's gap effect over the past 20 years, along with a pattern observed in 2025 that has recurred during previous bounces:
SmartReversals provides weekly technical analysis across its three publications, covering the following core securities and their price targets: SPX, NDX, VIX, IWM, SMH, DJI, BRK.B, TLT, GLD, SLV, PLTR, NFLX, AAPL, GOOG, TSLA, NVDA, META, AMZN, MSFT, and BITCOIN.
Additionally, on Fridays, our support and resistance level analysis expands to include SPY, QQQ, DIA, ES=F, NQ=F, AMD, AVGO, LLY, IBIT, ETH, UNH, MSTR, COST, PFE, TQQQ, SQQQ, UDOW, SDOW, UPRO, SPXS, URTY, and SRTY.
If you trade some of those securities this publication is for you.
For educational content about the indicators used in this edition, click in the links according your interest, the library uses the securities analyzed in this publication with real life examples: Support & Resistance Levels, MACD + RSI oscillators, Candlestick patterns, Moving averages, and Bollinger Bands. For the complete library, including studies of reversals and technical patterns in the stock market, click here.
Let’s start analyzing similar rebounds from previous years, the description of the third bullish signal, and an analysis examining what occurred after consolidations or pullbacks, depending on their price structure. All charts are followed by current price updates for the securities mentioned earlier, along with their key levels to watch.
SPX: Five V-Shaped Bounces Since 1950 - Common Patterns and What to Expect