After reaching the higher pitchfork line (blue arrow) SPY went back to the same pitchfork line as earlier (red oval)--see related ideas and my notes there. At this point I expect it to go back up again. If that doesn't happen in a short time (1-2 weekly bars) SPY may fall more. If it does, which I expect, the it will likely break through the earlier resistance pitchfork line where the blue arrow is.
Comment:
As I commented below, the inflation report came higher than the estimates and the market fell. My time window that I gave above is 1-2 week bars (this is a weekly chart). In my experience if the price lingers too long at the support level it may likely fall through. Note: by that I mean that the price doesn't move significantly from that level, in case of a double bottom like we have in the chart above, (reached bottom level then went to the next line up where the blue arrow is and then came back down to the level) is not "lingering around." In this particular case the price fell bellow (again, impacted by the inflation report) but it may just be a quick dip before the bounce. We'll need to give it 1-2 weekly bars to asses further.
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