Markets Poised for a Continued Move to the Upside?

Today the S&P closed the day above 1071.25 (around 107.45 on the SPY) which is a key short term level. This is a positive sign. Today also marks the first time of late that the markets didn't sell off at the end of the day which could also be looked at as positive.

This has been a tough market to anticipate of late so I would still recommend a cautious approach going forward. It is somewhat of a bold call, but I expect us to break upwards to finish this week. That being said, I will continue to let the charts do the talking, I am just using my prediction as a guideline on how to look at the market heading into this morning's open.

This is how I will play it:

I will look for the SPY to retrace to somewhere between $107.20 and $107.58. I will look to buy shares at whatever price in that range looks to show signs of a bottom or a reversal. If SPY confirms a move below this range, I will again look for this market to either head down further or continues the volatile sideways chop as we have experienced throughout this week.

If the market moves up in the morning, I will look to buy SPY if it confirms a move above $108.30 (1078.25 on the ES). Keep in mind that if you do enter a position, It is best to scale out of them as you reach price targets. In this choppy market you should ensure that you keep any profits when you do accumulate them. Some price targets to look at above $108.30 are:

$108.60
$108.98
$109.86
$110.45

OK, lets see what happens...