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Once again, the market attempts to sell off (perhaps triggered by the imposition of tariffs on Chinese tires by the Obama Admin), but the weakness does not stick. From a medium term perspective, the daily chart of the S&P 500 e-mini contract remains remarkably and potentially explosive on the upside as it fulfills the long standing target zones projected off of the huge base pattern -- at 1100 and then 1200. It is days like today, when the market ignores otherwise bad news, reverses weakness, and climbs into positive territory that returns me to the extraordinary -- and as yet unfulfilled -- upside potential of the inverted Head and Shoulders pattern. This picture also reminds me to continue to consider the possibility, if not growing likelihood, of an upside blow-off... a vertical assault on 1100+ in the hours/days directly ahead. Bullish, in particular, for ETF traders of the S&P 500 Depository Receipts (AMEX: SPY).
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!
