Equity Indices Remain Buoyant

Good Tuesday Morning, MPTraders!  May 7, 2024-- Pre-Market Update: The major equity indices and ETFs remain extremely buoyant atop their 4.8% (SPY) to 7.7% (IWM) three-week upmoves...

I am running late this morning after completing my pre-surgical physical ahead of next Friday's (5/17) hernia operation. The pulled groin muscle from last August that never completely healed turns out to be a hernia!  I will put this minor inconvenience in the rearview mirror in mid-May, and hopefully, sometime in June, I will be working out full steam ahead.

Let's get our bearings this AM with a look at SPY. Then I will play catch-up with posts on GLD, NVDA, PLTR, DIS etc...

As for SPY, the bottom line is this: Yesterday's strength checked off a lot of boxes that served to invalidate my counter-trend rally thesis off of the mid-April low at 493.86-- where SPY was down 6.1% from its 4/01/24 ATH at 526.01-- and instead, reinforced a more positive view that the current rally has the power to make a run at the April ATH-zone from 522 to 526. 

From a more granular perspective, as long as any intraday weakness is contained above nearest support at 516.20 (see my attached Hourly Chart), the bulls will be in total directional control and will be eyeing upside continuation directly to 518.50-520.20 next.

Only a sustained breach of 516.20 will argue that SPY is in the grasp of a shallow pullback that has room down to the 513.70 level prior to my expectation of the resumption of strength.

A break below 513.70 will be more problematic. We will address that "event" if and when it arrives... Last is 517.45