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SPX - Friday's bullish engulfer signaled a rebound for this week

The S&P500 has been retreating since tagging 2111 by the end of April. Last week after falling to 2040 price bounced back to close Friday's session above Thursday's open. From the daily chart, we see a bullish engulfing candle.

SPX Daily Chart 5/9

(click to enlarge)

There was indeed a support pivot just under 2040 along with the 50-day simple moving average. Friday's bounce shows that the market is not quite convinced about the "sell in May and go away" tactic. 

Based on Friday's resilience, I would anticipate a rebound this week towards at least the 2075-2080 area. If price fails to cross back above 2080, I would say that bears have won. In this scenario, I would look for further bearish correction, perhaps towards the 2000 handle in the medium-term (several weeks, rest of May). 

On the other hand, if price pushes above 2080, I would refrain from fading the market. There will be upside risk back towards the 2111 high and even the highs in 2015 around 2130.