Stocks have proved plenty in the past two weeks. They sustained their first 3 percent dip in 15 months and the first 10 percent correction in two years then quickly regain their footing
The S&P 500 held crucial index levels such as the 200-day average and responded energetically to oversold conditions with a powerful bounce starting a week ago. The tape absorbed gusts of intense forced selling from funds trapped in doomed bets on volatility staying suppressed.
And investors have seemingly made a tentative peace with bond yields holding near four-year highs, with the 10-year note sitting just beneath 2.90 percent.
The S&P 500 has gained at least 1 percent in four of the past five sessions for the first time since it roared off the bottom of a deep correction in October 2011. In all, the index is up 7.8 percent from its lows and has recovered nearly six-tenths of the maximum loss from the Jan. 26 record high at 2872.
The rebound has been tenacious and impressive. Yet arguably the harder stretch of the recovery path could be ahead. Here are the next technical, fundamental and liquidity tests set out ahead of the market three weeks after its giddy melt-up rally ended and two weeks into a newly volatile search for equilibrium.