Let’s stick with the 30-minute SPY chart to maintain the right perspective here. You can see that today’s rally has closed the gap from Monday morning’s sell-off. Overall, the market has been flopping around sideways since late-May. In particular, last Thursday’s drubbing figures to have created another group of trapped longs looking to get out alive as soon as they are made whole, or anywhere close to it.
In other words, a simple gap-fill is insufficient to qualify as a major bullish event. I’d need to see more progress than this. We know that end of month/end of quarter window dressing is upon us, but that is often an ephemeral event that hustles the wannabe hustlers looking to play it. To my eye, there is not much of a long trade unless the bulls can break and hold above this gap-fill area. Incidentally, that gap-fill area on the actual S&P 500 index coincides with the key 1335 level.