The prior-day high and low are among the most-watched levels on the SPY chart, so reactions there are meaningful. The reclaim-and-retest is the cleanest way to trade them: two steps of confirmation instead of one guess.

The two steps

Step one, the reclaim: price that had been below the prior-day high pushes back above it and holds — buyers taking control of a level that was resistance. Step two, the retest: price pulls back to the prior-day high and holds it as support rather than falling back below. The old ceiling has flipped to a floor, confirmed by the retest. (Mirror it for a reclaim of the prior-day low from above turning it into resistance for shorts.)

Entry, target, stop

Entry: the hold of the retest — a bounce off the reclaimed prior-day level (buy calls). This is a retest-of-breakout anchored specifically to prior-day structure. Target: the next level up (a wall, the expected-move high). Stop: a decisive loss of the prior-day level again — if it can't hold as support, the reclaim failed.

A reclaim tells you buyers showed up; the held retest tells you they stuck around. Two confirmations beat one hopeful entry.

Context

This setup is especially clean after an overnight gap that puts price near the prior-day levels, and in a supportive regime where reclaims hold. Skip it if price is chopping across the prior-day level repeatedly with no acceptance — there's no reclaim to retest. NoVo maps the prior-day levels with the rest of the structure so you can see the reclaim and the retest against the full picture.