Bulls Last Stand

Ugly close yesterday and now SPY is set to gap down and open at ~104.7. While futures are down, I question why they aren't down even more? Clearly the stock market was overvalued when SPY was trading ~112 and SPY gapped down to ~110, similarly there have been other huge 1-point plus gap downs along the way down. The close at support yesterday is generally bearish so wouldn't one expect the follow through overnight to put SPY down another point or more? Instead SPY is off 60 cents from the close- a large gap but one that indicates to me that there are some sellers who followed through overnight and sold but not an overwhelming amount of sellers.

So I'm giving the bulls one more chance to climb back above trendline A and reclaim the uptrend. If SPY cannot break above trendline A then SPY is headed to 102.87 and to new lows.