Taking a look at the SPY chart on a quarterly basis, you can see that the previous 4 quarters we were trading in a range between 102.33 and 116.62. That gives about a 14 point range that we broke out of at the start of this quarter. Now whether we succeed in holding these current quarterly gains I do not know and neither do you all, but we do know that we broke out of a tough range. Looking at some of you favorite stock charts in this perspective may also give you good insight on key levels that need to be watched. Based off of this chart the SPY can rally all the way up to about 130ish area before we encounter some resistance. If we break past that level we should rally back towards the 2007 highs around 145 on the SPY, which would be a double top. I will be watching the 130 area on the SPY as it seems like the most likely target if we continue higher.Notice how we had a sharp rally off the lows, sideways flag consolidation, and now are experiencing the breakout. Also notice how the volume has definitely tapered off and how the buying has been on light volume. We must take the volume into consideration, but as Brian Shannon says, " Only Price Pays." Enjoy!
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