Rally day #3, will it hold above 4,400?

A lot of drama in the Markets, are the Bulls finally waking up? We just saw the rally day #3, I even opened a new long position in Health Care Equipment & Services. The scary part is what I keep mentioning almost every day. No rally since Nov/05/2021 has lasted more than four days.

There are a few differences with past rallies, especially on the daily chart (screenshot below). The price of the S&P 500 has been more than a month below the 30-day EMA (blue line), today finally it close decisively above the 30-day EMA. The 30-day EMA also started to flatten.

One thing is to test the resistance, another very different is to really break it. Depending on the action tomorrow, we will see which is it. If it stalls or collapses then the Market was just testing that level. If the rally continues on it's way up it will break the resistance and the 4,400 level will become the new support.

Two weeks ago the S&P was around 4,400 but it couldn't hold and it declined to test the 4,191 support. If you check the orange arrows, you will see that even though the previous rally reached 4,400 it didn't even got close to the +1 Keltner Channel band (KC), this time the current rally already reached the +1 KC, an indication of force.

There was finally an improvement in the New Highs and New Lows numbers in all the timeframes. The New Lows are still decreasing and especially in the Monthly New Highs there was a big improvement. This signals a reduction of the selling pressure.

I don't fall in the hot hand fallacy, assuming that whatever is happening now is going to continue happening in the future. Certainly the Market is changing, the Bulls are at least trying to do something, however the Correction could resume at any time. I have all my open positions with stops ready to trigger. If the rally stalls, I will evaluate if I close the positions even if the stop didn't trigger.