Pullback Appears Complete for S&P 500

Pullback Appears Complete for S&P 500
By Mike Paulenoff, www.MPTrader.com

Looking at the hourly SPY chart, normally this picture would argue for a relatively potent rally effort off of what amounted to an equidistant correction from the 12/11 high at 152.87 to this morning's low at 143.96. The light blue lines demarcate what are two relatively equal declining legs of a correction, which would have been exactly equidistant at 143.70. The form of the decline and the glaring positive momentum divergence indicate that at the very least the pullback should be complete and that a period of recovery should be forthcoming. A climb to the 147.00/20 resistance plateau is my initial target. A climb above 147.25 should trigger upside continuation too 150.50-151.00.

  • 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!