On Friday the market gapped up and rallied for the first hour of the day. It set the morning high at the 10.30 reversal time and went sideways all the way through lunch. At the 1.30 reversal time it began to grind higher above a lunchtime base and traded to new highs and closed at the high of the day leaving a solid green bar on the daily chart negating the prior days red bar. The SPY was similar. The market came right off daily support area and reacted perfectly to the area and followed through on the rally. Everything is in place for a stage II daily chart with this area at “3” being the new higher daily pivot low. The market intraday has solid support at “1”, or on a strong open may find support at “2”.