Today $SPY bounce confirmed the solidity of Giant Wall One as a support. Thus, price action is now consolidating inside the two Giant Walls.
I see this as a confirmation that the bear is not winning the war here; otherwise, $SPY would have fallen under GW1 and created widespread panic. Last night before I went to bed, SP500 was printing negative 2.50 but I told myself that I would wake up to see a positive SP500; lo and behold, I was right. Why would I think that? That is because I see the GW1 as a huge support. You see, these two mythical walls from 2007 and 2000 hold a lot of psychological power among us simply because of its historical significance. Thus, each of these two walls can either be a powerful resistance or support. It just so happen that these two walls are in the vicinity of each other that we have a twi-wall zone that holds such unfathomable power.
Consider ourselves lucky to be witnessing such historical price interaction inside these two mythical walls. Due to the steeper angle of this current rally, my money is that we are taking out GW2 shortly.
Take a look at the daily chart below and you will understand where I’m coming from:
My 2 cents.