I feel like the best way to play today is to look for a measured move as SPY has hit a new ATH in the overnight session. As you can see, the fibs agree with the overnight about the measured move, which would put the target for today at 525.32. That also comes in to the top of the channel around 525. Overnight halfback is at 522.12 for our gap up scenario. So let’s play with gap rules in play today, obviously bullish but from the last few FOMC days price has faded instead of following through. Since we’re near top of the channel, that makes sense.

1) Gap and go, anything above 522.12 is go target 523.45, 523.80, 524.17, 525, 525.32
2) Gap and crap, if price gets below halfback 522.12 target 521.47, 520.42. Unlikely but possible is continuation instead of support at these levels, IF that happens we are in prior day range target bottom of that range with support at 520, 518, 515.52
3) Consolidation – price between 522 and 523.80 is consolidation as market digests overnight gap, look for break and follow-through to scenarios 1 or 2

William Wallace