Now that the e-mini S&P 500 has recovered just about all of yesterday's late-session plunge (18 points), what if anything does the big-picture candlestick chart tell us?

Let's notice that the rally peak last Friday at 1106.75, when attached to the prior meaningful recovery rally peak at 1174.75 from May 13, creates a resistance line that cuts across the price axis today at 1089.80. That happens to be just two points above today's intraday high (so far), but represents very strong resistance to any further near term strength. Just North of the trendline is the prior rally peak of 1096, yet another very powerful and important resistance plateau. Finally, let's notice that the 20-day MA is declining sharply towards the 1100 level, and is arguably the most potent of all of the near-term impediments to further upside.

What this tells me is that some bullish influence must come along that is stronger than the resistance levels mentioned above for the e-SPM to continue higher in the upcoming hours. Perhaps Friday's Employment Report is a candidate, in the absence of another bout of "event shock."

Mike Paulenoff is a 26-year veteran of the financial markets and author of MPTrader.com.