You can see on the 30-minute SPY chart below that this morning’s move higher took price above a fairly well-defined resistance level just below $141. We had a late-morning/early-afternoon shakeout, which seemed to quickly flip traders bearish again. However, the price action plainly speaks for itself that the breakout has not yet been negated. In fact, most breakouts tends to retrace back and fill the gap before heading on higher.
If nothing else, this type of action punishes traders who are not necessarily playing it on the safe side, but rather those who are outright fighting the tape and playing for an imminent rollover.