Jun 15

S&P in New Upleg?

Although the SPX, and its ETF the SPDRs (AMEX: SPY) have not made new multi-year highs again this week (not as of this update), this week's sharp upside reversal certainly gives the chart pattern the look of a market that is starting a new upleg. If that proves to be the case, then we should expect the SPX to climb towards the target derived off of the head-and-shoulders base that was created during the 2002-04 timeframe, which projects to 1570. Such an upmove will amount to a 2.3% climb from current levels. At this juncture, only a break of recent lows at 1492/87 will invalidate the bullish projection and reverse my near-term polarity altogether.
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!