You sell here if you think this is a "normal" bear market squeeze

SPX - looks like many are buying the bear market rally

If this is a bear market rally or something else we leave to you to debate, but one thing is sure, when things squeeze like they have done over the past week, most people do not sell. Newborn bears get properly punished and scared bulls end up chasing stuff often very late. The latest move up has been more violent than the move down. What are the levels to watch here?

SPX is trading right on the big 4200 as of writing. The "real" resistance is the 50 day at 4250. Note the negative trend line coming in at that level as well. After that you have the 50 day at 4340. Getting excited about SPX after it has rallied almost 11% from recent lows is probably a late trade...It is soon time to fade if you dared to buy it.