Returning to our 15-minute SPY chart going back to Tuesday, you can see that we remain in a short-term consolidation. Moreover, that symmetrical triangle has seen a shakedown, retrace back up to the broken support trendline, and is not grinding sideways just under this morning’s gap. It is important to remember that chart patterns can and do often morph into larger consolidations/patterns.
Thus, the larger point to consider here is that the market is so far mildly consolidating its recent gains. It would be only if the bears can start build some momentum down and away form that broken symmetrical triangle that we would look for a deeper pullback. Until then, waiting out but closely observing the summer doldrums as charts try to firm up is likely the best strategy.