The selling on SPY ended up exhausted at crucial fib levels marking the completion of an ABC move down which stops out all the weak hands and gets many traders short. We also came off oversold areas on the %R.
If momentum continues with this move to the upside then we can take out previous highs. If we fail then watch out - the 200MA is not far away and would be a likely target on the downside. Cautiously bullish.