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The market is shrugging off Wednesday's reversal.
A 10-min SPDR S&P 500 ETF Trust (NYSEARCA:SPY) chart shows that following a pre-opening snapback to yesterday's breakdown pivot at around 183.60, the SPY pulled back to undercut yesterday's lows. If there was going to be downside follow through and acceleration, it should have played out from the first snapback, which would have led to a decisive break of yesterday's low rather than just an undercut.
The normal expectation from yesterday's key reversal from record highs in the SPY at a test of a test of the December 31, 2013 highs would have been a multiday give-back at the very least.
In addition, the SPY has retraced more than 50% of yesterday's range. This also suggests higher prices.
It will be interesting to see what happens if the 185 strike is approached again as someone has been protecting that turf with authority since the end of December.
Ten-Minute SPDR S&P 500 ETF Chart From Yesterday and Today With Pre-Opening Action:
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