Here is a chart of the S&P 500 Futures. We have a bull flag formed as indicated by the red line. We have had a nice rally off the lows that has broken the downtrend, and now we have formed a small consolidation flag.
This move up has also been supported by dropping interest rates ( higher bond prices ) charted below. Notice how the bond market started it's rally while the stocks were making their final drop down. This type of divergence often happens at market lows.
I have been looking for a drop into the fall to set up the mid term congressional election buy spot, but we may not get that. Seasonals say that we will, but this setup right here is fairly bullish for the very near term. I did not expect to see a rally like this at this time, so I have been wrong about this so far. A breakout above this flag is a legitmate long side entry in the market.