You almost have to appreciate how pronounced the short-term lines in the sand truly are, with respect to our ongoing analysis of the 30-minute SPY chart. The Monday morning reversal is still a serious threat as a major bull trap, especially considering we remains not only below the top purple line of reference, but also the lower one as well, at 151.50.
Beyond that, the lower light blue line sits at roughly 150 and is currently being probed from underneath as we speak, meaning that price below it and is now circling up to it.
Just as I noted late-last week and yesterday morning, there is an air of hopefulness and exuberance on the part of bulls accompanying each of these intraday bounces. However, the short-term technicals are now damaged until they are not, even if the intermediate-term trend (weeks, months) remains firmly higher.
Trying to reconcile those competing timeframes is always challenging for swing traders. But until at least that lower light blue line is recaptured by bulls on a closing basis, waiting for a better spot is probably the way to go. Also watch out for the declining 20-period moving average (orange line) on this timeframe to act as resistance.
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