$SPY Weekly Reversal

Ticker: SPY Daily Chart

Following its wedge breakout, SPY has ran into its microphone pattern, in which we had tested on our previous all time high run and failed. Coming into its gap up on Monday we opened just below this critical resistance, followed with an immediate rejection in the morning with high volume. We currently have an extremely bearish candle on the weekly chart following this rejection... lets see how SPY decides to act on Friday. We are currently sitting on our wedge breakout for a retest. It is critical that SPY can maintain 348, should we lose this level I think we will see that small gap fill back toward 343. However, if we can maintain this gap fill entry and round back above (and maintain) 354, watch for 357, 362, ATH.