Jun 25

New Upleg in S&P?

by Mike Paulenoff, Mon June 25th, 2007

Thus far today's action in the SPDRs (AMEX: SPY) has the look and feel of the end of a correction and the start of a new upleg. However, I am still not sure whether the larger formation off of the 6/1-6/4 highs at 154.39 through this moment is a high-level coil type of continuation pattern, which implies several more hours of sideways meandering prior to an upside breakout, OR, if the 6/8 low ended a pullback and all of the action since then is the start of a new upleg followed by today's retest. In either case, the SPY should accelerate to the upside; however, in the case of the latter scenario, the acceleration will occur much sooner than otherwise. For the time being, I will expect the slower coil pattern to develop, while being acutely aware that the more powerful pattern could rip the SPY's at just about any moment.
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!