This will be an important week for the equities markets. The reason why is because some important support levels are being tested. The important 2,120 level for the S&P 500 was tested on Thursday and the market rallied off of it. 2,120 was a clearly defined resistance level from February 2015 through this past July and it was the exact bottom in early September. This level needs to be watched this week. If it breaks there could be a big move lower. If the market rallies there should be some resistance around 2,150. This level was the bottom of the range from September 29th through October 13th.
Small caps are testing important support as well. $120 ( which corresponds to 1,200 of the Russell 2000 ) has been an important level for the IWMs...the Russell 2000 iShares. They rallied off of this level in mid-September and are now testing it again.