Healthy rebound from SPY YS1 level. Yesterday at close ES was still below its YS1 at 1866, but recovered overnight and launched. Gaps are pesky. The real tell on this rebound was how many yearly levels were in play the last few days. See this blog post for more.

So with this many yearly levels holding, is this the low of for the year? Anything is possible, but I will continue to focus on buying what is above pivots and shorting, hedging or avoiding what is below. If you followed that strategy, you were taking healthy profits on shorts or taking off hedges over the last 3 days. And sure it is a speculative trading buy (as I mentioned on the futures setup, if ES and NQ both rallied above their YS1s) but I don't think this is a big investment buy. Why? Read this detailed blog post.

But if QQQ recovers its YP next week on a close, then I will say buy some and use that as a stop area.

FWIW, both SPY, QQQ, and even futures didn't get the best level on the turn. What really nailed it was the NDX YS1. SPY, ES and NDX below.