Once again, shorts get squeezed on the open. We might get a retrace tomorrow based on reversal candles, 2nd day of afternoon weakness, and decent negative divergence. We have sell signals on 30/60 frames but they have failed twice on this strong upmove. With more fray the last 2 days, we might see a confirmation on the third signal.
If we bounce at 192.2 SPY and consolidate that would be very bullish going forward. A break of it could mean a move lower. If there is a down day with low volume and lack of speed, I will be interpreting that as a bullish situation.
Still a chance of going back down to retest lows, but today's gap up made that more remote. Last night, we saw a massive squeeze in futures. It was obvious that someone wants this market going up for now.
As of now, a slight edge to the bears tomorrow but the easier trade will be to go long on oversold timeframes if the drop is not heavy.