9:29 AM – Price has stayed near yesterday’s close at around 677.50 throughout the overnight session. Going flat like this, combined with the rejection toward the end of the regular session yesterday could be clues that the bears aren’t going to let price get too far out of that bullish consolidation that got price to rally yesterday morning. If we get hourly closes below 677.50 – which is our axis level for today – that is not as good for the bulls. They need price to stay above the axis for them to keep climbing.

It’s possible for more serious bull/bear battles to start happening soon. And SPY 674.00 is still a pivotal area. The more price hangs around there, the more likely bigger moves will happen in one direction or another. Don’t forget about the potential reversal signal on the weekly chart. That doji candle on the weekly chart has caused some weakness in the market so far. Let’s see if it will continue.

No major data releases scheduled for today, but volatility can pick up at any moment. Be careful and trade well today.