You’d think this market is exhausted and it probably is, but apparently it still has some fight left in it, because it refuses to stay down for very long.

Like Rocky Balboa taking punch after punch from Ivan Drago, yet still picking himself up off the canvas and remaining on his feet at round’s end.

You have that today with a cup and handle pattern on SPY that has been in development since the morning lows were struck. 

So if you are short (like I am as of yesterday), be weary of this cup and handle pattern that is forming on the five minute chart of SPY, because once this confirms, it is very likely I’ll be cutting my short exposure in half (at least). 

Here’s the Cup and Handle: