With this rally, however, the market is approaching significant resistance on the hourly chart at 272.36 (based on SPY ). The hourly trend does remain down, which suggests we should still look for short trading opportunities. But there is no clear short trade set-up on the lower 15 minute chart -- unless SPY were to close on that chart below 263.31.
Perhaps a will develop on the 15 minute chart as the market action develops today. The hourly chart offers another possibility -- what Adam Grimes refers to as an anti trade. This would first involve a close on the hourly SPY chart above 272.36 resistance. Next, we wait to see if there is an immediate strong rejection of that attempted breakout on the next hourly bar. If so, we would go short on the close of that hourly bar.
Keep in mind that if SPY solidly closes above 272.36 on the hourly chart, the prevailing trend will have changed to up. And then we would be looking for long opportunities on shorter time frames. As always, price must dictate what we should do.