Week 39 Market Roundup — these signs suggest S&P 500 stock market bottom?

Last week S&P 500 futures (ES) broke below the support level at 3300 and tested the immediate support area between 3200–3230. The results satisfied my expectation as stated in Week 38 market roundup, which covered the bearish scenario when S&P 500 failed to overcome 3425.

When we take a closer look at the S&P 500 chart, there are a couple of signs suggested a temporary bottom has been formed:

• Descending wedge pattern in the S&P 500 daily chart. The downward thrust was shortened suggested fading of the down momentum.
• Increasing effort to the downside in the US session on 23 Sep 2020 and during the non-regular trading hours session on 24-25 Sep 2020 did not produce a meaningful downward results, suggested supply absorption.
• Consistent demand came in on 24 & 25 Sep 2020 produced quality rally up, broke out the descending wedge and the first supply zone at 3270. This is the time where the effort to the upside is in sync with the results (a rally up)
• Last week’s price action of S&P 500 tested the support area at 3200–3230, where it is a logical place to see a bounce up.

These are the early signs to call for a bottom (at least for now). If S&P 500 can commit above the next resistance at 3320, it should continue its up momentum to test the crucial resistance at 3420 and 3450.