Using multiple timeframes to determine price structure

I think a lot of people (including me) were anticipating a powerful trend day today. We had a big gap that refused to fill even a little bit. A big downward impulse followed with new TICK lows.

A slight pullback occurred and then another downward thrust with a fresh new TICK low. Advancers outnumbered decliners by 2,300 at that point. All signs pointed to a trend day.

But price started oozing upward eventually breaching the 20 period moving average and is testing the upper Bollinger band as I write this.

What caused price to unexpectedly reverse and start heading upward?







Looking back a few days we can see a level of support that formed on the 30 minute chart.

Once the price of SPY reached that support level, it bounced and headed upward. It's still going up as I write this.

We'll have to see how powerful this level of support is. Will we get a "broken" trend day as price reverses.

Watching different time frames can help you to determine targets and stops and allows you to have an upper hand as price makes seemingly random moves.