The SPY continued its rally after breaking above the 153.18 – 157.50 box. Currently price is lodged nicely in the box and I would trade the SPY when price goes near either to the support of 153.18 or the resistance of 157.50.
If price manages to close strongly above 157.50, then I would continue to have a bullish view on the SnP500’s Exchange Traded Fund which is the Spyders (SPY). If price closes strongly below 148.72 then I would have a bearish view and short the Spyders. Target would be given in later outlooks as the market constantly evolves.
On the fundamental front,the first quarter of 2013 in the U.S. brought a lot of optimism into the market as the US indices ended Quarter 1 at all-time highs with improvements across all sectors of the U.S. economy. This is a sharp contrast to the Quarter 4 data that only showed a slight increase at the rate of 0.4% as reviewed by third and final reading of GDP on Friday. Considering that Quarter 4 GDP was originally at -0.1%, the improvements are definitely welcomed.