The stock market is moving higher once again. The SPDR S&P 500 ETF (NYSE:SPY) is trading at $115.52, +1.10 (+0.96%). This is the third up day in a row, following the mega reversal on Tuesday. The SPY has jumped from $107.43 to a high today of $115.57. This is a whopping 7.5% move in just three days.
The markets are riding a wave of rare calm in Europe. Talk of a bank bailout on Tuesday turned things around. In addition, the ADP Private Sector Employment numbers were solid and today, Jobless Claims were decent as well. After so much doom and gloom, shorts are running for cover and buyers are once again hoping the lows are in the markets.
The lows are not in the markets. Ultimately, more downside will eventually come. The key to profits is to catch the mega upswings and downswings. The SPY will start hitting resistance at $116.25. Resistance levels will be plentiful all the way to the $120.00 level. It is unlikely the markets will get through these point. There is nothing new out of Europe and anything done would be a simple band-aid. In addition, the markets are rallying on hopes of a great Non Farm Payrolls number tomorrow. Even if it is solid, the positive effects have been mostly factored in.
Gareth Soloway
InTheMoneyStocks.com
