Potential Near-Term Double Bottom in S&P 500

Potential Near-Term Double Bottom in S&P 500
By Mike Paulenoff, www.MPTrader.com

Earlier this AM, the SPY declined to 127.30 prior to pivoting to the upside for a rally to an intraday high so far at 128.87. Let's notice that the AM low left behind a potential near term Double Bottom type of pattern with Fri.'s low at 127.04. To trigger upside acceleration that unleashes the potential of the "mini Double Bottom," the SPYs must hurdle and sustain above129.00-- for a run at 130.00/30 thereafter. No, not exactly a major move, but the ETF has to start somewhere in an effort to traverse the down-slanted price channel off of the 6/05 recovery high at 140.89. At this juncture, a sudden downside pivot reversal and break of 127.30/04 will be very negative indeed, and will point the SPY towards a full- fledged retest of its March low at 126.07.

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