The 30-minute SPY timeframe below shows that price has retraced back up to the bloodbath we saw two weeks ago on November 7th. This initial price area should be a good gauge of how much further this snapback rally can run. We are seeing some initial sideways action here, but so far there has been no violent rejection, which favors bulls. Continued mild consolidation here likely points to upside resolution here, which would trap another group of shorts who are looking for an imminent rollover.
______________________________
