This morning the SPY sold off after 10:00 into support at 107.50. Note that the bounce candle formed a long tail. This often tells us that the SPY may continue to move higher. It is very important to watch for an increase in volume to accompany the bottoming tail candle. The bottoming candle closed a 107.80 and the next two candles moved higher to 108.15. This is an excellent intraday scalp opportunity. These patterns occur everyday. Once the trade is in the money it is important to sell half the position and move the stop into money to secure a winning trade.
