SPY Engineers Another Whipsaw Upside Reversal

Increasingly, this morning’s pre-open weakness into a reaction low at 183.83 looks like a bear trap, followed by an upside reversal as Janet Yellen’s testimony appears to have systematically ”encouraged” the shorts to cover their short positions from yesterday afternoon.

Let’s notice, however, that the upmove from the intraday low at 183.83 to the high at 185.45, so far, has not (yet) hurdled key near-term resistance at 185.60/.65.

If and when that level is taken out, the SPDR S&P 500 (SPY) should take off towards new highs above 185.15, possibly on the way to the 191.00-192.99 target zone projected by my P&F Chart work. Only a sudden downside reversal and break of 184.834 will “lock-in” a post-Feb 24 near-term top pattern.