Test of Trendline A is Key

Test of Trendline A is Key

SPY is set to gap down and open at 111.3. Yesterday SPY established the uptrend by holding above trendline A. Today SPY should test trendline A to determine whether or not the uptrend will remain in play. So SPY may test trendline A early (blue) or following a gap fill (pink).

In both cases either SPY stays above trendline A or it doesn't. If it doesn't stay above trendline A then SPY is headed for support at 110.8. If SPY does hold above trendline A then SPY has a shot to move higher than yesterday's high at 112.

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