The SPDR S&P 500 ETF (NYSE:SPY) spiked higher today, hitting the key double top from April 26th, 2010 at $122.00. This level will be resistance in the short term but may not hold up if the Federal Reserve continues to push for manipulated asset prices. They are doing this by flooding the markets with cheap money which causes the Dollar to drop. When the Dollar drops, all assets in response must increase in price thus creating a fake wealth effect. If the $122.00 level gets taken out, watch for $124.00 on the SPY. Key leaders of the rally today wide spread. International Business Machines Corp. (NYSE:IBM) continues to hit new all time highs while commodity related stocks like Chevron Corporation (NYSE:CVX) continue to soar as well.
Chief Market Strategist