Feb 01

Near-Term Reversal Peak for S&P

While the Nasdaq indices sag after a failed secondary rally effort, the big-cap S&P and DJIA indices remain perched right near their multi-year new highs. Which index is telling us "the truth"? My sense is that we are seeing a rotating peak -- with the NDX the first to peak and roll -- to be followed by the SP, DJ and RU in the upcoming days-weeks. Be that as it may, my near-term work in the S&P 500 SPDRs (AMEX: SPY) argues that in the upcoming hours -- possibly in reaction to tomorrow's Employment Report -- the SPY will be ripe for at least a near-term reversal peak from the 144.70-145.20 target zone. Should such a scenario emerge, all eyes should be focused on the 1/26 pivot low at 141.58, which if hurdled will argue strongly that more than just a minor trend reversal has taken place.
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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!