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Higher Highs Ahead For S&P Deposit Receipts (NYSE: SPY)

|Includes: SPDR S&P 500 Trust ETF (SPY)

February 29, 2012

Both the S&P 500 Index (SPX) and its tracking ETF the S&P Deposit Receipts (NYSE: SPY) are at levels not seen since May 2008.

How much higher can the S&P SPDRS still rise?

When new highs are reached, one way to set a target for the advance is using Fibonacci support and resistance levels. In this case, using the lows reached in the 2011 correction, the 127.2% retracement is at $145.27.

This is the first potential target for SPY and it is 5.8% higher than Tuesday's close at $137.56.

If this target is decisively surpassed, we will be looking for $155.56, the 161.8% retracement level.

The ( ETF Timing Strategy has a position in the S&P 500 SPDRs.

Disclosure: I am long SPY.