S&P 500 Technical Structure Still Healthy

So far the early weakness in the SPY has not amounted to much other than a minor pullback, and certainly has not inflicted any meaningful damage to the pt. & fig. chart chart structure. In fact, while the Qs (Nasdaq indices) declined to test and to marginally break Tuesday's pivot low, let's notice that the SPY has exhibited considerably more relative strength -- and have pressed only to a 139.40 print, which is nearly 1% from testing Tuesday's low.

To inflict initial damage to what looks like another high-level congestion period within the still viable July-Nov bull trend, the SPY must break near-term trendline support, currently at 139.04, and only then will we have reason to suspect that a test of Tueday's low at 138.10 is likely. Otherwise, the SPY remains in a very healthy technical posture, dissipating its 3-session overbought condition ahead of the next upleg projected to 141.50/70.

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