The S&P MidCap SPDR (MDY) fell to broken resistance with a gap down on Tuesday, firmed on Wednesday and gapped up on Thursday morning. The two gaps created a price "island" on Tuesday-Wednesday and an island reversal over the last four days. Notice that this island reversal also marks a bounce off first support (from broken resistance). As a short-term pattern or reversal, Thursday's gap must hold to keep it valid. A move below 270 would fill the gap and negate this reversal pattern. Also notice that MDY hit a new high just three weeks ago and shows relative strength as the price relative hit a seven month high this week.