SPY is heading into that gap area again, last week it quickly moved back out of it but we shall see if that happens again. 518.36 is your support there, below that 516.40 can be had and we would break the uptrend channel. There’s going to be a lot of fighting on the buyers side to keep that from happening. Most likely scenario is we see price bounce out of this zone again and try to reclaim 521. With such a large gap down though gaps like these do not typically fill in one day, and it’s likely we see the 519.40-520.50 area hold the trend line. If we lose the trendline though, that could be a major change in tone.

JOLTS today at 10am and Powell is speaking tomorrow at noon. So plenty of volatility ahead of FOMC minutes release next Weds.

1) Price above 519.40 target 520, 520.50, 521
2) Look for rejection on a bounce at any of those levels, target from the rejection level 518.36, look for support here
3) Watch for any outside moves after 10am, could be ugly target 516.40, could be crazy bullish target 522. Not sure that an outside move is warranted but the market is on edge.

William Wallace