SPY Possibly Headed to 109 Before Next Drop

SPY Possibly Headed to 109 Before Next Drop

For a third time in the past 20 days, SPY proved to be a great long play when it dipped below 106. This shows that the 104-106 area is strong support. Now SPY is set to gap up and open at 107.2. Having reversed twice after hitting 104.4, I believe SPY is now headed for a backtest of trendline A. So I wouldn't be surprised if SPY ran all the way up to ~109 before dropping again. Yesterday's volume was nearly 400M, which is less than the 600M+ volume I want to see to signal the low. So overall I am still expecting SPY to drop further.

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