As of the break to new lows for this correction in SPY this afternoon, stocks have a very nice hourly chart bullish set-up with significant divergence present. This is the type of set-up that often leads to nice rallies in the direction of the major trend. So keep an eye out for that here.
However, the reversal attempt today did not manage to close in the top half of the daily price range, and so I don't view this as a bottom reversal day.
Until there is a clear bottom reversal day, I view the larger pressure to be down here still. That being said, the set-up is in place for a rally attempt. When the larger currents are down, the nice bullish set-ups may be only lead to 1-3 day modest bounces, so that is something to factor in if taking bullish positions on a reversal attempt here.
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