Today the $SPY did something it hasn’t yet done in this selloff. It flushed through a significant level and then moved strongly back above it and closed there.

$411.50 is a price support area that dates back over a year ago to April 2021. It helped keep prices up through much of that month and into May ’21 when two failed breakdowns helped propel things higher through the summer.

Then in the last dramatic selloff, we saw $SPY bottom right in the same area on February 24 (the day that Russia invaded Ukraine) and move higher.

Combined with a $VIX reversal from an area that has been significant in past selloffs and maybe, just maybe this could be the start of a rally.

Futures are decently green this evening which is a good sign. A lot can change overnight though. This is still very much a “guilty until proven innocent” market environment. But there are some encouraging puzzle pieces emerging today.

Watch for follow-through tomorrow, preferably with $QQQ and $IWM participating too, for hints to what might be next.