After Monday's big gap down in the market everyone will be looking to see if a tradeable bounce begins now. The SPY is a complex maze having a number of secondary channels.
Monday's gap down open gained the support of two channels with the opening tick, the large horizontal green channel and the recent downhill pink channel. These two channel lines of support look to have given a bullish trading opportunity but the problem is that just above Monday's close there are two lines that will serve as resistance until broken through, the eight month declining blue channel and the steep uphill red recovery channel. With Monday's unusually heavy volume for a gap down open there were no doubt a number of traders that bought the SPY but will be watching closely when the SPY reaches the red and blue channel lines to see if they become resistance when tagged.
Trade well my friends