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This chart could signal a bottom for stocks

Traders work on the floor of the New York Stock Exchange.
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Traders work on the floor of the New York Stock Exchange.

The S&P 500's nearly 2 percent rally since Tuesday afternoon is impressive and could be signaling a bottoming in the index, some technicians say.

Several technicians agree that a bottoming is possible, but not all agree the coast is yet clear.

"Stocks bottom in the next three to five days, and I think we're going to have a nice rally into year end," said Mark Newton, chief technical analyst and partner at Greywolf Execution Partners.

The S&P 500 touched 1,871, four points above the Aug. 24 low of 1,867, a key level for a retest. The S&P was up about 1.2 percent at midday at 1,907 and had traded as high as 1,916 Wednesday. Some traders see a resistance band at 1,917 to 1,921.