Since Nov. 5, the $471 level has been resistance for the SPDR S&P 500 ETF Trust (SPY). Each time the shares reached that zone, they ran into a wall of sellers. This put a top on the price.
But that may be changing, as SPY appears to be setting up for a potential break out.
The ETF is now trading above this important level. It shows that the sellers who created the resistance are gone. They have either finished or canceled their orders.
Having this large amount of supply out of the water sets the stage for a new uptrend. Buyers will be forced to pay higher prices, and this could force the market into rally mode.
By Mark Putrino
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