Mike's Mid Day Minute is available to members on Monday, Wednesday & Friday evenings, with one article per week available to non-members. Members please login and see "Mike's Mid Day Minute" in the navigation menu towards the top of the page.

Potentially Big Head-and-Shoulders Bottom in S&P 500


Bullish Patterns in Nasdaq and S&P
By Mike Paulenoff, MPTrader.com

The Nasdaq 100, as represented by its QQQQ index tracking stock, has been pushed up against key near-term resistance at 36.40, which has been hurdled but needs to be sustained. A sustained hurdle of that level should trigger upside acceleration towards a test of much more important support at 36.80/85.

A hurdle also triggers the potential of a July Double Bottom formation at 35.54 and 35.62, which projects to 37.50/60 and possibly as high as 38.

At this juncture, only a failure to hurdle 36.40 followed by a reversal and plunge beneath 35.50 will wreck the developing base-like pattern.

Moving over to the S&P 500, the overall pattern displayed on the point and figure chart shows a potentially big double bottom formation at 1220-1226, which must hurdle 1280 to trigger upside confirmation that projects to an optimal target of 1320 thereafter.

However, from a near-term perspective, the SPX must claw its way above key resistance at 1262 and 1274 to have a realistic chance to trigger the larger double-bottom pattern.

For the time being my work argues for a hurdle of 1262, at which point we will re-evaluate the upside potential.

Mike Paulenoff is author of the MPTrader.com ETF Trading Diary (www.mptrader.com), a real-time diary of his technical analysis on equity markets, futures, metals, currencies and Treasuries.

  • Action-Oriented Trade Set-Ups in Stocks & ETFs
  • Macro Analysis of the Broader Markets
  • Detailed Technical Guidance for each Trading Idea
  • Live Interaction w/ Mike & Our Member Community
  • And Much, Much More!
Join Now! - Special Offer!
Veteran Wall Street analyst and financial author, Mike provides detailed and timely analysis and trade set-ups on a range of markets. Read more...

Have Mike's “Out Front” morning analysis delivered FREE to your email inbox twice weekly!