After holding again at its very strong 204.0 support level, the SPY "Blasted-Off" again last Tuesday (5/24/16), heading for its all-time closing high at 213.5 (the intraday high is 214.0). If the market breaks above 214.0 (approx. 2140 on the S&P 500 Index), with some degree of strength, we could easily get a 5-10% rally thereafter.
Two things stand in the way of this:
- one is the Fed (surprise, surprise) and
- the other is the SPY's extremely strong resistance at 214.0. This is a very tough one to call, but we have high confidence that MIPS will pick up the trend quickly.