For the first time this year, the bulls are showing their horns.
The S&P 500 Index and the Dow Jones Industrial Average closed their first positive week in the last three, renewing confidence in the otherwise gloomy market environment. According to one technician, a bottom could be in place for the very near-term—at least for the time being.
"The first thing we see [on the charts] are the textbook signs of short-term trend exhaustion," Rich Ross, head of technical analysis for Evercore ISI, told CNBC's "Trading Nation" this week. The S&P 500 saw its best trading session in more than a month on Friday.
Looking at a chart of the S&P 500 exchange-traded fund (ETF), the SPY, Ross pointed what he calls a three-day pattern of "exhaustion, stabilization and follow through" that formed on the chart in recent days. He pointed to the low seen mid-week as the exhaustion phase, the rally on Thursday as the market trying to find footing, and the continued strength during Friday's session as a confirmation in trend.
"I think that sets the stage for some short-term relief that could take us higher," he said.
For Ross, the S&P 500 rally another 5 percent over in the next several sessions, with the SPY going as high as $200 before resuming its downtrend. On Friday, the fund traded around $190.