The SPX only stayed above the 50 day simple moving average this time for 5 days. At the turn of the year, it at least managed 7. The 2002 lows are crucial support to test the will of new buyers. If they fail to hold, the 741 level will serve as the canary to warn of a possible complete retest of the March lows.
So far, we have only another headfake to the upside created by jawboning from the Feds. We still believe this is part of a bottoming process, but we need more honest buying (not short covering) to confirm the lows are already in.