As we can see today the SPY bounced up from it's trendline in the morning, breaking out on a major resistance.
Two scenarios can happen tomorrow
#1
VIX bounces from the trendline causing the SPY to go down which would invalidate todays breakout and cause it to come back down. Considering that both the SPY and VIX have an opposite GAP it could go either way.
#2
VIX breaks the trendline and may come down to fill the GAP it has around the marked area. In this case we can confirm that the SPY can move up to fill it's GAP as well.
Trade safe ! I'd love to hear your input and thoughts on this.
Two scenarios can happen tomorrow
#1
VIX bounces from the trendline causing the SPY to go down which would invalidate todays breakout and cause it to come back down. Considering that both the SPY and VIX have an opposite GAP it could go either way.
#2
VIX breaks the trendline and may come down to fill the GAP it has around the marked area. In this case we can confirm that the SPY can move up to fill it's GAP as well.
Trade safe ! I'd love to hear your input and thoughts on this.