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 1. SPY/weekly
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.
Figure 2. QQQ/ weekly
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