SPY looking for higher after a retrace to 177 area

10 thg 2, 2014

On the hourly chart, SPY is showing 5 waves off the low. Additionally, the momentum of the rally off the Feb 5 low was very strong. The 4H chart shows the correction having completed 2 ABC zigzag patterns. The first rally was a short-covering rally. It was vicious and unforgiving. I think SPY continues to trade higher, but some profit taking is needed first. I think it will continue to outperform IWM, and new all time highs are definitely not out of the question.