Dec 20

New Recovery High in S&P 500

About an hour ago, the SPY made a new recovery high at 142.66 off of yesterday's low at 141.19. The pattern carved out within the upleg exhibits bullish form, which "warns" us that after a pullback (to 142.20/00) we should expect another potent upleg to emerge that propels the SPY to retest and hurdle the 12/14 high at 143.24 -- on the way to 143.50/80 thereafter. Only a plunge that breaks yesterday's low at 141.10 will wreck the pattern -- and will turn my work decidedly negative on a near-term basis.
Chart

Mike Paulenoff is author of www.MPTrader.com, a real-time diary of his technical analysis & trade alerts on ETFs for precious metals, energy, currencies, and an array of equity indices and sectors, including international markets, plus key ETF component stocks in sectors like technology, mining, and banking. Sign up for a Free 15-day Trial!