Trading RM, LLC.

Right now this is how I am seeing the price action for the SPY 10 minute chart. Yesterday the market put in a double bottom and rallied into the close. During today's session the market was able to break its down trend line connected from the highs of October 29, 30 and November 2. The downward sloping 200 moving average should act as some strong resistance since it has not been touched in a few trading sessions. I will also be watching the $105.00 price level, which has shown itself to be a significant level in the past and will work as solid resistance. Tomorrow the setup I will be watching for is the pierce of the moving average to the $105.00 level. The first touch or pierce of this moving average should provide a solid scalping opportunity to the short side. I will be watching to see if yesterday's double bottom can be taken out. If taken out the market has some more downside. The first major level of support that I am seeing is $102.00.

There is also a possible head and shoulders pattern being formed on the daily chart. Currently, the market might be in the process of trying to form a right shoulder. The market has lost its long term trend line from the March lows.