Two Scenarios

SPY will gap down and open at 106.65, this small gap should be closed today. There are two possible scenarios:

1. SPY rallies and fills the 107.12 gap, tests trendline B and pulls back to consolidate before testing trendline B later or...

2. SPY pulls back first, consolidates and then tests trendline B later in the day.

In both cases I favor going long when SPY pulls back to ~106.15. However there is a possibility that SPY drops all the way back to ~105.3 at support from trendline A before rallying. Usually the low of the days come in between 10:30-11:30EST, so if SPY drops to 106.15 in the first 15 minutes then I'll expect further downside to 105.6 or 105.3. But if by 11EST SPY is trading ~106.15 then it's time to go long.