SPY Retraces Nearly All of Last Week's Decline. What Now?

The SPDR S&P 500 ETF (SPY) 120-minute Candle Chart shows that the last Wed-Thurs plunge from 240.67 to 236.15 mostly has been erased.

The only level left for this rally to accomplish is to close Wednesday morning's opening down-gap at 240.08-- and to sustain above the gap, to indicate that last week's very brief decline represented a completed near-term pullback.

Should such upside continuation unfold, then within the subsequent hours, SPY also should climb above its March-May highs at 240.32 and 204.67, into new high territory, which also looks like it could unleash upside strength in the aftermath of a 2-1/2 month high-level, inverse, corrective accumulation formation that will project to 245.50, and then to 248.20/50 thereafter.

Only failure to close and hold above last Wednesday's down-gap at 240.08, and/or continue higher to take out the March-May highs, followed by a reversal that breaks 237.90 initially, will begin to compromise the current upmove, and will leave SPY vulnerable to additional corrective weakness off of the 240.30/70 resistance zone.