(Disclosure: Bellaire Capital Managment is long SPY on behalf of its clients)
With a clear bounce off of the 200 day moving average, the SPY looks ready to target the 134.30 level that it failed to exceed early last week. The 2011 highs at 135/136 would be next. To break back into the uptrend from last October would take the market back up towards 139. The stochastic oscillator has only risen towards the middle of its range, so there is certainly some room to run higher, but I wouldn't want to be getting long at these levels.
Personally, I think it is too early for the market to rally towards the highs of the year. The Greek elections are less than two weeks away. There is going to be a long, slow build up towards our own Presidential Election in the U.S. I think we are still range bound until our own election is settled and the Europeans resolve some of their issues.
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