SPDR S&P 500 (SPY)

[learningboutinv]

Foot, thanks. Yeah I agree if we break 2000 with big volume it would be very bullish. But, if we break 2050, we would have a Cup and handle in the making which would mean new highs with a target of ~2439. So I will be watching 2000-2050 carefully and only day trading small positions until or if we get there to see what to do next.

What is interesting is $NDX bounced off ~1/3 of the cups advance. If we break up past 2050, then the measured move would be 2055.82 - 1672.76 bottom of cup =383.06 + 2055.82 (brim of cup) = 2438.88

Just a recap from stockchart's C+H site:

http://stockcharts.com/school/doku.php?id=chart_school:chart_analysis:chart_patterns:cup_with_handle

"Handle: After the high forms on the right side of the cup, there is a pullback that forms the handle. Sometimes this handle resembles a flag or pennant that slopes downward, other times just a short pullback. The handle represents the final consolidation/pullback before the big breakout and can retrace up to 1/3 of the cup's advance, but usually not more. The smaller the retracement is, the more bullish the formation and significant the breakout. Sometimes it is prudent to wait for a break above the resistance line established by the highs of the cup."

"Target: The projected advance after breakout can be estimated by measuring the distance from the right peak of the cup to the bottom of the cup."