Pre Market Analysis for Friday Morning

Looks like we will have a little Gap Up this morning which isn't a surprise based on the way we finished the day yesterday. It is illustrated nicely on the 30 minute chart as the last candle of the day makes a nice Doji Morning Star reversal indicator (See Figure 1).

We may even open right around the $109.60 resistance. Hopefully we won't break it. If we do open at or just below $109.60, look for an opportunity to go short here. May only be a scalp play though. Plenty of minor support levels to hit and retest $109.60. Also, if we do Gap up close to $109.60, we will be back above the 50 Day Moving Average which will also offer minor support.

Figure 1. SPY 30 Minute Chart

If bears can manage to move the market down today, specifically we need to break yesterday's lows of $108.75, there is no reason we won't reach $107.95 on SPY before the end of the day. Again, the $109.60 mark is important. If we don't reverse above that, the bears position will be strong.