SPY Charts 7/9 Look for Support at $134

Over the last month, despite European debt concerns, and not so hot job reports the SPY has seem to have found a bullish stride.  Please do not mistake me for being overly bullish because there is still much in the way uncertainty that is overshadowing this market.

The news this week will be mostly about earnings.  Alcoa announces after hours today and then some big names come later in the week like JP Morgan Wells Fargo, and IBM.  Earnings should be mildly positive and should provide the market a small push or grind just a bit higher.

The SPY should test $134 and that level of support should hold over the next couple of days.  The market is making higher lows and higher highs in the face of some less than ideal news (Spanish and Italian yields rising, less than ideal jobs report), but just like last year this could be the come before the storm.

Last year we also saw similar market conditions where SPY made a very nice rally in the month of June through July and then the flood gates opened and we saw a very large leg down.  Be cautious if you are entering bullish trades at this time one bad note out of Europe could rain on the bulls parade.

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Disclaimer: This article is intended to be informative and does not constitute a buy, hold, or sell recommendation., and should not be construed as personalized advice as it does not take into account your specific situation or objectives