The SPY broke out to a new high for the year, held those gains for about 30 minutes and then dropped back into the recent range. The good news is that the market remains above short term support at 111.00, above the rising 5 DMA and above the more important 110.50 level. The longer term timeframes are also bullish which gives us reason to continue to be optimistic. The one concern right now is that “from failed moves often come fast moves” If the market cannot get back above the 111.80 level and hold those gains we will have to become more defensive as it would make tests of established support levels more likely.