Watch for Break of Trendline A

Watch for Break of Trendline A

SPY is set to gap up and open at resistance from trendline A and from the 107.4 resistance level. Today we have to watch whether SPY holds or breaks trendline A. If SPY breaks through resistance from trendline A then expect a short rally, perhaps to 108.2. If SPY does not break trendline A then SPY should continue dropping possibly all the way to 104.5.

In the past two weeks I have watched twice futures sell off overnight only to be ramped up again in the morning, then proceed to sell off during the day again. The same situation has set itself up today.

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