As noted over the weekend, we were approaching 15 calander days into the 1st down wave or a bull market pull back; unk which at the time. The expected support areas of 109, 105, 101 held, with the SPY hitting 105 on extreme high volume.
The standard retrace is 4-7 calander days, we are now on day 2. After the 4-7 day retrace period, we will then know for sure if we are in a bear market trend or this was just a fast bull correction. The absolute speed at which the correction and one day retrace took place, points to a bull market flush.
If we take the the length of the correction and add that to the neckline of the correction begining, we can project the next upside SPY target between 135 and 150
We are in cash pending the standard retrace, but lean towards the bull side of the trade as being the ultimate outcome.
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