SPY broke the daily higher low pattern today by 20 cents after the consolidation of premarket, but the bulls showed up and bought the dip. Although the daily higher lows were technically broken, a V shaped recovery with volume could be considered a double bottom if the price is only broken by a few cents. A big reason for the recovery was the dip buying in the tech sector today with Apple breaking to new all time highs and surpassing the 1 trillion dollar mark.
We will now need to watch the volume of this bounce for more clues to see if the bulls will get continuation to the upside. Resistance on the daily chart is now $284.11 and then the all time high of $284.37. Support is the double bottom at $279.16. The bulls will need to consolidate to form a higher low and higher high on the 1hr and 4hr time frames for continuation back to the all time highs.
SPY Daily Chart:
SPY Weekly Chart:
