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In classic technical fashion, this AM the e-Mini S&P 500 (e-SPM) spiked about 1% above the top of its Apr.-May channel (920) from where it reversed to the downside back beneath the confines of the upper channel line, which much more often than not, is a signal that the most recent upward traverse across the channel is complete- and that a correction already is in progress. The peak at 929.50 ended the upleg from the 4/27 pivot low at 838.50. Since the earlier recovery high, the e-SPM has reversed and declined to an intraday low so far at 908.50. Key near term support rests in the 904.00-902.50 area, which must contain current weakness, otherwise, my work will trigger initial sell signals that will project additional pressure towards a test of more important support at 892-890. For now, as long as the e-SPM sustains above 904.00 -- to 902.50 -- we have to consider that the price structure just might be consolidating between 905 and 920 ahead of tomorrow's Employment Report -- and the potential for another thrust to new high ground near 940-950. MJP 5/07/09 11 AM ET (909.50; SPY 91.42)
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!
