Here I am presenting my views on the movement of S&P 500 Future and Nifty Future based on various charts(Hourly Chart, Daily Chart, Weekly Chart) and indicators (so no specific chart uploaded).
A Bear Rally is underway and the fierce nature of this rally in itself is indicator of it being a "correction" of prior (main) downtrend. Although it is most probably a Bear Rally, its not certain how long and how big it will last. So let me put down various levels to watch out for :
S&P 500 Future:
779 is going to be tough resistance and one should use that (if comes to initiate short position. If it manages to close above 790, then a possibility of testing 838 is on cards! So keep your stops tight.
749 should act as good support and if that breaks then look at 731 for support. If it trades below 731 then the range from 704 to 715 is next support, breaking this range on downside will be time to wait for new lows.
If Nifty future manages to get past 2805, then we can see 2855 very soon and that should be tough to break. My bet is for initiating a short here.
In case Nifty Future manages to get past 2855, we have 2975 as next resistance and then 3140. If we manage to see such high levels then it will be one great opportunity to those who missed last time to make positional short position as the Major Downtrend Line will come nearby and it has been a long time (nearly SIX MONTHS!!!) since Nifty Future even touched it!
On the downside 2730 is first support and if it breaks then I think 2625 can be next good support. If it breaks below that then a retest or break of sub 2500 levels can be possible.