SPY - SPDR S&P 500 ETF - Like a Rocket

Today  the  SPY - SPDR S&P 500 ETF , like a rocket, gapped up from the previous close of 132.10 to 133.16 . The intraday High of 133.93 was just below the Fibonacci level [ FL-L1AF382 ] at  134.39 which is a level where reversal can occur. That is what happened and after an intraday low of 131.17 the Price closed at 133.70  which is below the FL-L1AF382 at 134.39.  The Price moved up in the descending channel where the  upper trend line is parallel with the lower trend line which was  defined  by the points EW 1 and EW 3 .

The Indicator a combination of EMA 5 and WMA 13 made a positive crossover indicating a  BUY condition.

The Birds [ www.theidiotandthemoon.com ] are showing the following :

• CCI 6 : Rose above the +100 level indicating a BUY condition;
• CCI 20 : Having risen above the -100 level this Bird at -48.04  is still  indicating a BUY condtion;
• CCI 50 : This Bird is still well below the -100 level and is still on a SELL . However, the indicator has been steadily rising and may test the -100 level in the next session. A break above would confirm BUY conditions and a rejection at that level would confirm the SELL condition.

While we may see aminor correction I still believe that the Price of SPY is headed for a target level of 136 +/- .  To attain that level the Price has to clear the Fibonacci level at 134.39 and then the level 135.88 will be on the radar screen.

It is expected that once the 136 +/- target level has been attained then there will be a reversal that will take the Price back down towards the lower trend line of the descending channel.

keywords : SPP, ETF, SPDR S&P 500, Fibonacci, the Birds, EW