Breakout or Fakeout?

GM declares bankruptcy...of course we rally like mad. SPY broke out of the Green channel its been in for almost a year and a half and is maintaining its rise well within the blue rising channel.


The SPX monthly for the past 20 years shows the SPX has also broken through some VERY long term trends.


$CPCI:CPCE thought about crossing, I really think the cross is eminent.

And of course I had to adjust the upper trendline on the VIX:SPX falling wedge as all those breaks actually followed a trend. Interestingly enough the VIX was positive today even with the strong SPX rally.

Breakout or fakeout? Well it will be a little wile before we know. I expect in the short term we will pull back to work out overbought conditions.