S&P500 $SPX has been recovering nicely. Last week, I noted that after SPX found resistance at $2750, it might dip again. However, we saw price push higher to crack $2790 during the 2/27 session before it retreated. SPX Daily Chart (click to enlarge) Bearish Signal:- The 2/27 session concluded with a bearish engulfing candle. - Couple that with the fact the RSI is holding below 60, shows that bears might still be in control.- I think at this point, a hold above $2700 will add to the bullish confidence. - A break below $2690 on the other hand could be part of another bearish correction swing. - A conservative bearish outlook would be $2600, which is a viable target if the consolidation structure is going to be a triangle or some kind of coiling. The reason to anticipate this scenario is that the volatility at the turn of the month was a bit extreme.- Volatility tend to wind back and normalize after such explosion. If this is true, we should not expect another downswing like the one we saw a this past month. - Instead of the sharp falling knife like correction, he market might simply draw out a sideways consolidation mode, which would also support a coiling scenario.