While the current rally attempt is not all that convincing thus far, the S&P 500 did find support at a logical point. The pink trendlines are based on the July and September 2010 lows. The blue trendlines are based on the April and November 2010 highs. The numbers shown on the chart below (top-left) represent Fibonacci retracement levels from the breakout above 1,130 to the recent highs. The recent correction retraced roughly 50% of that up move.
Whether or not the S&P 500 can hold above its recent closing low of 1,178 remains to be seen, but there is ample evidence in hand to at least leave the door open to higher highs occurring between now and year-end.