Central bankers to the rescue! Any concern of yesterday alleviated with Draghi rally today. SPY has nearly reached target zone I have been pointing to since 10/8 with SPY / SPX above the MR1, meaning the 2HP at SPY 205.83 / SPX 2059.

This is a perfect time to consider what an ETF or stock will do when it reaches a major resistance level like SPY rallying all the way back to 2HP.

Most bullish: Soar through it, open above the next day and level turns into support
Also bullish: Pause for 1-3 days, then blast through
Bullish with pullback: Drop from level, hold another support, then try again and clear
Tricky bearish: Exceed for 1-3 days then fail and drop under
Bearish: Test level and reject for trade-able drop
Most bearish: Fail before reaching level and commence sharp drop (this happened in July)

With all that in mind consider the chart below.