Touching Tops

by Paul Costa

 The market appears to finally hit some resistance after rallying non-stop since the beginning of the year.  SPY has now hit the highs from 2011 right before the U.S debt down grade. 

The market rallied today after the Greek bailout announcement only to meet strong resistance right at the 137.10 level.  Touching the lows from Friday and eventually bouncing back to close green.  

Right now SPY is sitting at a very key major infliction point, if the bulls break past this level it is very possible that 143 could be seen.  But the market has rallied over more then 27% since its October lows, with a decent pullback since December and the energy to break above this level at this point in time might not be there. Meaning a pullback is in the cards soon.  

SPY has a gap below the current level at 134.04 if the market does pull back from this level this would be the first spot of potential support.   Now that the greek debt has been fixed the market can get back to focusing on finding out a true price rather then speculating on policy measures.  SPY now is hanging in no mans land bumping up against resistance and hanging below a gap.  If SPY does fail at this level it would create a nice double top pattern for the market.  

Read more http://www.pikertrader.com/main-page/2012/2/21/touching-tops.html