The SPY continues to charge towards the “scene of the crime” at the breakdown level which is coincident with the 61.8% retracement of the 2007 high to the 2009 low.   This level of focus is found at approximately 123.   At the rate the market has been advancing, it is likely that this level will be tested in the week ahead.  Remember that prior support is only potential resistance.

Short term, the market broke past the 121.50 level late on Friday and we will look for that level to be our first level of support.  The bigger level of potential support should be found near 120.50 (current location of rising 5 & 10 day moving averages) and then the 120 level which has been the scene of control over the last 2 weeks.  The trend remains higher, don’t fight it.