Context Into the Weekend

Headed into the first weekend of autumn, stocks are pulling back after ferociously filling a gap higher on the S&P 500 Index dating back to the harsh sell-off we saw two Fridays ago.

That sell-off seems like a distant memory now, given bears' inability thus far to gather downhill momentum off of it. Moreover, bulls have done an admirable job of keeping intact some of the more attractive charts in the market. 

For the remainder of this week, I have my eye on the following hourly chart of the S&P 500 Index. We are coming in with a fairly orderly tempo, which could easily be a higher low setting up a fresh leg higher. But we also do not want to be complacent in assuming as much. A strong close would be impressive considering the pronounced weakness, again, in crude oil. 

Also note the incredibly tepid bounce in volatility here, as the VIX ETFs are barely green. We should have a better idea by the bell if that relative weakness in a function of complacent bulls or a rather a certain degree of inevitability feared by bears.