Either SPY is going to bounce off $180.40 the August 24th low or it is not. The machines totally know this number. All my intraday stuff is locked around this level as well. Right now the 5 minute range is 182.89 to 182.16.
If we can run from here, 184.15 is doable before the close and that would be a moral victory which is what you get in a bear market. Since oil is weak today, the move probably cannot happen before 2:30 p.m., when oil closes. That said, everyone know that trade and it has not been working the past few days which makes me think it could work today. Contrarian.
Failure at 180.40 probably pukes it out to 175 then 170. That would be more pain. A great level to deploy a straddle.If you enjoy the content at iBankCoin, please follow us on Twitter