SPY made a new high today at 130.35

Feels good right?  It also appears like a late stage failed breakout.  Time will tell and tops can take many weeks.  Big yellow flag when you make a new high and fail that day below the prior days low.  For today, look for a close below the 20 day moving average at 128.13.  Then over the next few days it would need to hold under this level.  This happened on May 4th 2010, held on May 5th and May 6th….timber….. BUT IT MAY NOT HAPPEN THIS TIME.  JUST PAY ATTENTION AS YOU CAN ALWAYS GET BACK IN.  For the aggressive, look for a failed rally to 129 +/- and enter swing short trades.  Worst case is you buy em’ in at 130.41 and loose a percent.  Best case is a swift 5%-10% down move to cover into.For IBD readers, it looks like 4 distribution days for January 2011.

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