The 10-minute SPY chart below indicates the huge downtick we just had intraday is going to put bulls to the test. Even if this rally off the correction lows from 11/16 is sustainable, you are bound to see more than a few shakeout attempts to get those weak hands out. Thus, the better approach is to gauge whether the market is making higher lows on a daily timeframe, despite the assorted rug pulls.
Watch this price channel since Friday morning to see if it holds. We do have a rather large gap from Friday, though not all gaps have an obligation nor desire to get filled anytime soon in a strong rally.
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