Welcome back traders! Jumping right to it, taking a look at the 1 hour chart, got to point out that just like I had mentioned yesterday, SPY opened attempting to break the bottom of the triangle, then failed! Once it got over it, it began jigsawing (in the light brown circle) just like I had stated in yesterday's analysis it would do. Then afterwards it popped straight up, which I must admit, did not see coming! So I set up a FIB retracement, starting at the all time high and at the low of the correction, and lo and behold, there it was, it had broken above the .236 retracement and then dropped back down and stopped right above it. Now we've seen this happen before, the previous 2 pullbacks in the triangle featured similar aspects. The first surpassing then right after dropping below the .382 retracement and the second just completely rejecting it. So what do I see SPY doing tomorrow? I'd expect to see something very similar to what it did in it's first pullback there in the triangle, an attempt to continue pushing up then ultimately failing. MACD proves this as well, see those little waves it's formed? It's from the pullbacks, so I'd expect to see something right around those lines. As always, good luck and safe trading, till the next one!
