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JPMorgan: Bull market still alive, rebound ahead

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Sylvain Sonnet | Photographer's Choice RF | Getty Images

As the battle between the bulls and the bears heats up over the direction of this six-year bull market, charts of the S&P 500 index are flagging a potential rebound ahead, according to a JPMorgan chart analyst.

After moving sideways for most of the year, the S&P 500 broke below its trading range last month, dipping into correction territory for the first time in four years, down more than 10 percent.

The rapid drop, however, was quickly followed by a rally of 6.7 percent from the double bottom at the 1,867-level hit in late August, leaving the index right in the middle of the major support and resistance parameters, according to the top chart analyst.

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