It’s a New Day, Its a New Life… Its a New Game

• Posted by Greg Harmon
• on December 1st, 2010

Today changed the game for me. The SPY went from wallowing between support at 117.75 and testing a downtrend line that was approaching 120. But today changed that. The SPY gapped up at the open above the recent downtrend and quickly moved above the 120.38 level that marked the initial rebound from the low on November 16. It started to flag there and then shortly before noon broke out higher above the April highs at 120.89. At that point I put of the tweet above. The SPY went on to hold the April high for the rest of the day and closed above it. This was a very bullish day. It may break below the April highs again, maybe even tomorrow, and there will be baby steps on the way up, but today was a powerful move.

When I reviewed the monthly charts for the SPY, IWM and QQQQ and other macro indicators last night, IWM and QQQQ were very bullish, but the SPY was not as easy to determine a direction. Would the SPY lead lower of the IWM and QQQQ higher? Today’s move appears to have answered that. Enjoy it until it changes.

(As always you can see these individual charts and more on my twitter feed and on chartly.)

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