Higher Lows Established

The first week of 2012 has been a constructive one for equities and the $SPY is on track for its fourth consecutive close above the 200 day moving average since breaking below it on August 3rd. It is encouraging that the markets made higher lows (blue arrow) yesterday after absorbing the gap higher on Tuesday. These lows will be important for the markets to hold above next week, if they can hold then price targets above will come into play. Tune into my video at the end of day for a more detailed look at what those levels are along with other potential scenarios for next week.