RBS

Some Resistance Becomes Support instances today. The SPY gap down this morning consolidated at R1 for a good half-hour. A break of the opening range came in the form of an NR7 (purple candle, on the 5-min chart below), followed by a WR7 (white candle). Price stopped at the previous session's resistance level (followed by a harami candle setup AND a "First Cross" short entry). The falling wedge corresponded with a consolidation around vwap (complete with momentum divergence). Price tested resistance again, broke out and consolidated at new support. The previous session's highs was the next range to go. Price closed the day right around Firday's highs on pathetically low volume.Our 15-min and 60-min chart highlight the RBS (resistance becomes support) concept even more clearly.