Can the S+P 500 continue to rebound?

A little earlier we had results from Johnson & Johnson (JNJ) and they were ahead of both top and bottom line forecasts. Very shortly we will get the results from Bank of America (BOA) and Citigroup (C), both also leading S+P 500 components. As with the DAX in the previous update, we now look at the technical picture on the S+P 500. The fall from the record high this year (6,147) to the recent low (4,835) has seen the index rebound as high as 5,481 last week, on April 9. That high was just short of a 50% correction target of the entire fall. That remains in place at 5,491. The high seen yesterday was set at 5,459 (just above 200 day moving average), but the index fell back to close at 5,405.97. In fact those results from BOA have just been released and they have beaten estimates on both the top and the bottom line. That has not exactly boosted the S+P 500 futures though and that could be due to Q2 guidance from the company. The shares are higher in the premarket though (by around 2% so far). Turning back to the technical picture on the S+P 500 we see that the 50 day moving average has now crossed below the 200 day and that is not positive folks. The 200 day is in place (as of the close last night) at 5,753 and the 50 day is in place at 5,748. If the index can rise above that 5,491 level later on, then it might extend, but right now it is not priced to reopen close to that level and all the while it caps the topside, downside risks remain. The S+P 500 is right now priced to reopen around 5,410