Latest Shakeout

Yesterday's price action in SPY was the latest shakeout on our way to 117.5. These shakeouts have become all too commonplace and indicates to me that the market is trying to move up but there are too many bulls on the bus. The shakeout becomes known when it is met with strong buying near a previous top/support level. I am expecting to see SPY at 117.5 by Monday. It's possible that SPY drops all the way to support from trendline A today but I view this scenario as unlikely. I expect SPY to instead dip a little near the open and rally for the remainder of the day. An hourly close below 115.5 is a warning sign that further downside is ahead. Any close above 115.5 is bullish.