The bulls and bears are duking it out as price breaks out to new cyclical
highs. The bulls will tell you those new highs must mean something good,
and the bears are watching for signs of a double top. We have all sorts
of reasons and explanations, but in the end, the bulls appear to be winning. Prices
are above key support levels and the trend is looking up. Personally,
I think it is a market top, but price has the final say. And who really
cares what I think?
Figure 1 is a weekly chart of the S&P Depository Receipts (symbol: SPY). As
long as price remains above the key pivot support level at 140.72, then everything
is good. In other words, a weekly close below this level is a double
top.
Figure 2 is a weekly chart of the PowerShares QQQ Trust Series (symbol: QQQ). The
key pivot (or support level) to watch is 67.82. A weekly close below
this level is a double top. Otherwise, it is smooth sailing ahead.
Disclaimer: Guy M. Lerner is the editor and founder
of The Technical Take blog. His commentary on the financial markets
is based upon information thought to be reliable and is not meant as investment
advice. Under no circumstances does the information in his columns represent
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in the securities mentioned in his columns and on the Web site; in all instances,
all positions are fully disclosed at http://thetechnicaltakedotcom.blogspot.com/.
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