As traders get back into the swing of things, the markets make a big move higher, the S&P 500 finishing up over 2.5%.

Looking further at the price action, we can see that a nice breakout has taken place. Unfortunately for bulls, prices failed to close above the 200MA (on a weekly time-frame). It has been quite a long time since the S&P, and markets in general, have seen the 200MA. The last couple of times the S&P has met the 200MA, it has acted as a point of support and resistance.

Because of this, I expect this upcoming week to be rather significant. Usually, the professionals will either gap above the MA, inspire a strong move above the MA with surprising news, or keep prices below the MA.

We will have to wait and see, but if the markets close on a strong note who knows how high the rally could continue.

Volume-wise, last week was an improvement but not as strong as bulls would like when accompanying a strong breakout. Volume will play a big part in deciding how the markets will react to the 200MA so keep an eye on that.

There isn’t an economic data being released on Monday, but later this week we will see some important figures regarding the Trade Balance, Retail Sales ex-auto, and the CPI.

Based on that, I doubt Monday will be very busy as the Smart Money will wait to hide their trades among important figures.