The S&P500 closed under
768, confirming a double top on the index. Trading the SPY this morning was just screaming a test of this 768 level. We tested, but came shy by something like 8 points. Watching the 1-minute chart of SPY we were seeing two things that (to me) were hinting at a reversal of some kind. First was a bullish momentum divergence vs price.
Second, was a reading on
the TRIN pointing at less momentum to the downside:
By the time price was at the V-bottom point we were somewhere around 7% away from the 50-EMA on the 15-minute chart. The 5-minute chart showed two hammer-like candles followed by a large range green bullish engulfing candle. Price recovered S1, returned to VWAP to consolidate and then moved up to the 50-EMA on my 15-minute chart, tagged it for an instant and turned back around. You can look at the 1-minute chart above to see how the top played out; showing a bearish momentum divergence as price tagged the 50-EMA on the 15-min. chart.
Second, was a reading on the TRIN pointing at less momentum to the downside:
By the time price was at the V-bottom point we were somewhere around 7% away from the 50-EMA on the 15-minute chart. The 5-minute chart showed two hammer-like candles followed by a large range green bullish engulfing candle. Price recovered S1, returned to VWAP to consolidate and then moved up to the 50-EMA on my 15-minute chart, tagged it for an instant and turned back around. You can look at the 1-minute chart above to see how the top played out; showing a bearish momentum divergence as price tagged the 50-EMA on the 15-min. chart. 
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