S&P 500 (SPX) Remains Constructive

I am not sure what to make of today's action in the e-SPM. The earlier intraday break below 1312 only triggered a follow-through to 1210, where the index pivoted to the upside for quick 10 point spike. The only thing my work points out is that the intraday pullback to 1210 preserves the overall series of higher-highs and higher lows off of the March and Feb. lows. From that perspective, the e-SPM remains very constructive. On the otherhand, the index still must hurdle March-April resistance between 1320 and 1321.25 to trigger upside acceleration to my next optimal target zone of 1325-1330. Only a failure to climb to new highs followed by a decline that breaks 1310 will begin to compromise my current constructive outlook. MJP 04/06/06 2:45 PM ET (1317.50)

For more of Mike Paulenoff, sign up for a Free 15-Day Trial to his Macro Trading Charts.

  • 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!