Intraday Look and Analysis

Let’s return to the zoomed-out look of the SPY. The Hourly timeframe illuminates the cup and handle breakout from early-March. Price was able to recapture that breakout point (at $138) this morning, after losing it earlier in the week. If it can hold, the bulls will have scored an initial victory before heading up to challenge the presumed supply at the $139 level.

A V-shaped bounce is extremely difficult to trade if you were able to get out of the way on the wild ride down. To look for a safer entry point for longs, I am looking to see a slight pullback back down to the $138 level, have it hold, and then resume higher. Otherwise, another move lower in the market should be not dismissed, just yet.

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