Premium Preview: SPY Undercover

The SPY intraday perspective, in this case I'm using an STRange 50 bar, shows price has been undercover of Bearish Butterfly PRZ.  It's basically been holding its breath and sooner or later will exhale.

2016-04-18_SPY 50r HT

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The initial exhale levels to break and hold are above 208.24 or below 207.68.  Above 208.24 has 208.69 target, this will be a decisive region and even if breaches above it but falls back below 208.69 keeps the Butterfly the primary pattern but if has upside continuation, the ideal target is 209.64 with potential breach to 209.9.  this will be a very important resistance and huge opportunity for sellers to step in, if they cannot, then 211.2 area is next target.

As long as price holds below 208.24 then more important below 207.68, the probability is for the Butterfly Retrace Mode and has the ideal minimum target at 206.5 and the ideal target at 203.09 and scaling points at gray levels and emphasis at 205.19.  This will be very important support test.

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