After a gap down premarket, SPY recovered 468.91 and saw 5 - 5 minute candles retest it and hold before taking off the rest of the day. This kind of price action brings some optimism back into my trading as we're finally starting to respect technicals again. That being said, it's unfortunate that we're still seeing the "false breakdown" style of price action that has made up the majority of the last two months.
Next area of resistance is 475.31 for tomorrow. We'll see if we test it or gap up/down. If we do test, I'd like to look at an intraday short there. If we drop before, 470.95-470.75ish seems to be a potential short-term support area. That would be an opportunity to long and to keep playing the range until something breaks. If it does, we move into the higher/lower range and do the same thing. It's a simple strategy but works as long as price respects levels. I've learned the last couple months that sometimes it's best to sit out and observe rather than trying to change your strategy to accommodate price action. Of course, sometimes changing strategies works - I only mean that changing a strategy that's tested and proven doesn't seem like the most productive decision.