Sep 20

Another Loop into New Recovery Ground for S&P 500?

by Mike Paulenoff, Wed September 20th, 2006

In the hour that has lapsed since the FOMC announcement, SPY has gyrated from 132.76 to 132.06, back up to 132.44 in what looks like another attempt to thrust to new highs towards the top of the broadening top pattern, at 133.00. At this juncture, only a decline the breaks and sustains below the prior intraday pullback low at 132.06 will be our initial indication that the SPY's have hit intraday upside exhaustion. Barring such a decline, let's expect another loop up into new recovery high ground -- and possibly into the 133 area, where we want to add to our current 50% short position.

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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!