Retracements represent short-term rallies against the primary trend. Yet once the retracement rally exhausts itself, it returns to the primary trend. (In this instance, we should see a return to the bear market downtrend.)
The retracement rally to watch? 2811 on the S&P 500 represents a 50% bounce. These bounces are quite common for bear markets.
Less common, yet relevant for the “Fibonacci faithful,” one may see a 62.8% retracement to the upside. Nevertheless, both the 2811 and the 2958 levels for S&P 500 should serve as significant resistance levels for the S&P 500.
It is true that the Fed is providing monumental immediate-term liquidity and stimulus support. That said, if history is any guide, the current retracement move is a better selling opportunity than buying opportunity.