By Mike Paulenoff, www.MPTrader.com
A wicked swoon during the second hour of trading in response to a rumor that United Airlines (UAUA) had filed for bankruptcy. That stock plunged from 12 to nearly 3 and took the overall market with it. The S&P 500 Depository Receipts (AMEX: SPY) plunged to 125.49, which represented nearly a 50% pullback (125.32) of the entire upmove from Friday's "Jobless low" at 122.00 to today's "Fannie Mae (FNM) high" at 128.62. Apart from the drama and vicious intraday action, purely from a technical perspective, the SPYs have corrected -- or partially corrected -- the initial upleg off of Friday's high-volume price low at an important support plateau -- and that is a very healthy sign so far.