Turnaround Tuesday for the S&P?
Thus far, the e-SPH has failed to exhibit any sustained
buying pressure, which has enabled the index to continue
to slide off of last Friday's secondary recovery high at 1299.
Today's earlier session low at 1271.75 represented a 62%
"give back" of the entire prior upleg from 1255.75 to 1299.75,
which usually provides meaningful support IF THE DOMINANT
UPTREND REMAINS UP. During the next 2 hours, we will find
out if the trend is up-- and if today is a Turnaround Tues.
A sustained rally above 1278.50 is needed to trigger initial
signals that the near term corrective process is complete, and
that a recovery rally phase has started. Conversely, a sustained
break below 1270 will argue that the dominant near term trend
is rolling over-- and likely will exert enough downside pressure
to test the Feb. 8 low at 1255.75. MJP 03/07/06 1:45 PM ET 1274
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