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We’ve held off on our Mid-Day Minute today until after the Fed announcement. Those following the S&P 500, including traders of the SPDRs (AMEX: SPY) or the ProShares Short SPY (NYSE: SH), may want to see the e-Mini S&P 500 chart, which provides a highly liquid, near 24-hour picture of the trading pattern. From a big picture perspective, when I look at the action since last Friday's high at 1016 into this morning's (overnight) pullback low at 985.75, followed by today's sharp upmove, it looks to me like a pullback is complete, and possibly that a new upleg has started that should test and hurdle 1016. If such a scenario unfolds, then the e-SPU should climb to 1030, and perhaps 1050, as the upside potential off of the 10-month inverted head and shoulders continues to seek its higher measured targets. Only a decline that breaks 995 will begin to compromise the very bullish scenario, while a break of 985.75 will point to 950-940 thereafter. For the time being, the bulls remain in control. MJP 8/12/09
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!
