Daily bars chart of SPY, the etf tracking the S&P 500 Index.

Here is a daily bars chart of SPY, the exchange traded fund that tracks the S&P 500 Index of large cap U. S. stocks, updated to October 8, 2009.

We see an accelerated uptrend that started on July 8th, where price strongly diverged upwards from S1, the lower green MIDAS support curve.  This uptrend was tracked by a TopFinder (TF), dotted green curve, that was fit to the bar marked “Fit point”.  That TF ended exactly at the last bar of that accelerated uptrend.  Typically, when a TF ends, it consolidates back down to the closest in support curve.  But this uptrend was almost linear, with virtually no pullback along the way from which to launch another S curve.  The fit point bar is the only one that might be considered such a pullback, so we launched S2 from there.  Price did correct down, breaking below S2 and supporting at the the gap above the fit point bar.

From there, it’s gone into a very irregular up move.  On Oct. 2nd, price dropped down and supported at S2 and that horizontal support line defined by the peak on Aug. 7th.  And since then, it has been moving strongly upwards.

Today, price has broken above the red MIDAS resistance, which is a significant event, indicating great strength to this new uptrend.  The fact that it has bounced off S2, after having drooped twice below S2, shows that it’s gathering strength.  This all means price is likely to go on to new highs above 108.

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