Today's action in the SPY represents a classic breakaway up-gap thrust out of a two-week sideways, bullish congestion area.  The potent upmove has propelled the SPYs to new bull phase highs at 132.58 on the way to a 132.90-133.30 next target zone.  At this juncture, only a reversal and plunge below 131.60 will begin to compromise the current very constructive chart pattern.

Mike Paulenoff is a 26-year veteran of the financial markets and author of MPTrader.com, a real-time diary of his technical chart analysis and trading alerts on all major markets. For more of Mike Paulenoff, sign up for a free 15-Day trial to his MPTrader Diary by clicking here.