After breaking out to new highs yesterday, the market gave up a good portion of those gains and fell back below the break out level. While the trend remains higher, we have to be aware that we often see “from failed moves come fast moves”. This morning the SPY is trading right near yesterday’s low near 109.62 and breaking that level could lead to a deeper pullback towards 109.00 which is also today’s S2. It would take move back above short term resistance at 110.20 to see further upside extension.