of that key . I believe it is logical to see some kind of a retest of 136, but not a break.
The market now has 13 more weeks to rally from this formation and there are numerous upside technical measurements.
Method#1. 108 to 136 = 28 pts added to 136 = 164 target.
Method#2. 142 peak down to 127 low, added to 142 peak = 157 target.
Time Method#1. 14 weeks of rally starting from the previous week. This is week 2.
Note that the market is likely to test support around the 136 level, but I believe it will hold. If the SPY retreats and 135 trades, then all bets are off for this projection.
There is a lot of money flowing OUT of default-risk-free Treasuries and this is in part why I think the market is lifting despite the obvious headlines that are negative.
Cheers to all.
Tim 5:45PM EST , Aug 14, 2012