January 4, 2012
Although the S&P Deposit Receipts (NYSE: SPY) was unable to close at its highs in Tuesday’s start of the New Year rally, SPY did close at a new short term high.
The close, at SPY $127.50, was above the December 7 closing high which was followed by two weeks of declines.
Still ahead is resistance at SPY $128.60, the October 28 closing high and the highest closing level reached since the steep August selloff.
A solid close above SPY $128.60, less than one percent higher, would be a bullish event and would also be the first sign of legitimate market strength in half a year.
Currently support is at SPY $120.00 and we are watching for a potential breakout in coming days. A failure here would be extremely disappointing.
The Fibtimer.com (http://www.fibtimer.com) ETF Timing Strategy does have a current position in the S&P 500 SPDRs.
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