After a couple weeks of sharp bearish corrections in the stock market, the past few sessions have been encouraging. But let's not get complacent here. There is still a good chance the correction or consolidation is still running its course. Let's take a look at the S&P 500$SPX500 Daily Chart(click to enlarge)Holding Above 200-day SMA:- The fact that price held above the 200-day SMA is encouraging for bulls. - However, the volume during this dip as well as the fact the RSI came down to 30 are signs that the market has just entered a consolidation/correction period.Monitor Resistance:- As the S&P500 rallies, we should pay attention to the 2725-2730 area. We have the 50-day SMA as well as a previous resistance pivot here. - A hold below 2750 would signal further bearish correction.- A break above this level does open up the bullish continuation scenario, but we should still respect the previous resistance at 2880. - Finally, we should also monitor the RSI as it pulls back up. - If the RSI holds under 60, the recent bearish momentum would still be alive and we should anticipate another dip. Another bearish attempt might push the index down to the 2480 area, which was a previous resistance from July to September 2017.