If you’ve been lulled to sleep by the recent intraday market action, don’t fret.

According to the long-standing price principle of “Range Expansion and Contraction,” the next move in the market is likely to be a range expansion breakout swing move, that will offer opportunities for those aggressive enough to take them.

Let’s take a quick ‘pure price’ look at the S&P 500 ETF SPY and note the symmetrical triangle compression and the boundaries to watch for a potential breakout.

I have a long position here that I opened not following my rules.  When I do it.....
GLD is now re-testing the upper trendline after the breakout to the upside.
Force Index is negative.  MACD printed a negative divergence at the top.
Not nice.

Slopeof hope wrote

Setups abound.  (The Reformed Broker)

Is the risk trade back on again?  (The Money Game)

My plan now is to unload the SPY calls, and some TNA ETF I picked up (who can resist TNA really?) a few hours ago if/when we hit 1150 on the S&P 500.  The level is very obvious to humans and computers alike.  This is January 2010 highs .... those levels have NOT stopped either the Russell 2000 or NASDAQ the past week, so I don't know if it will cause a pause in the rally.  Historically it would - but this type of rally is making its own history.

Working gas in storage was 1,737 Bcf as of Friday, February 26, 2010, according to EIA estimates. This represents a net decline of 116 Bcf from the previous week. Stocks were 71 Bcf less than last year at this time and 21 Bcf above the 5-year average of 1,716 Bcf.
Storage Report