SPY Pivots - Market Analysis for May 31st, 2006
The SPY's pivoted off of yest.'s pullback low at
126.01, and have rocketed to 127.33 so far today,
in what looks like the beginning of a new upleg
within the larger upside recovery rally that began
at last week's low of 124.67. Yest. I had identified
126.60/20 as the likely target zone for the conclusion
of the pullback. Today's strength confrms 126.01 as
the low of the pullback, and the inaugural point of a new
rally leg that should test and hurdle Fri.'s high at 128.43
on the way to 129.50/80. We will look to enter long positions
into weakness to the 127.00-126.80 area in the upcoming
hour(s). MJP 5/31/06 11:50 AM ET 127.20
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