The white line shown in the previous August 18th SPX chart did contain and provide support. It was a decent rally today. We have seen the back and fill type of weak and choppy trading as was mentioned late last week and early this week.
On this chart I show a comparison to the Financials index (Rifin in yellow). The Financials have been weak over the last few trading sessions, and were also underperforming today. The broader market can rally without Financials, but that is not a rally (or turning point) I can trust for a long period of time. What it may simply indicate at a minimum is more back and fill action to come later in the week.
Many of the major banks bottomed on August 8th whereas SPX bottomed on August 9th. In the last several days many banks for example BAC, C, JPM, GS, MS etc... have traded under the August 8th lows, and are still trading at or near those levels. This will be monitored closely.