Went short SPY premarket and now expecting retest of lows in the near future. Still there's a chance of a temporary bounce but now that we have breaching intermediate support at 191 SPY, 186 isn't far away. Question is whether we overshoot 186 and test the spike low at 181.5. Things I will be looking for is divergence on the 1 hr, daily frames, reduction in daily selling volume, and hopefully a reversal candle below the lower bollinger.
Getting close to the retest. Volume should surpass Friday's volume which should give more credence to this move. On a side note, the fact that volume is still relatively low could argue that we has a long way to go to hit capitulation.
Oversold here but no signs of positive divergence. For me that will be almost obligatory to go long.