The S&P 500 Depository Receipts (SPY) are only about $0.30 from making new multi-year highs above the July high of 156.00. Remarkable though this upmove has been in the "aftermath" of the credit crisis (as if it is no longer a crisis at all), my overall work leaves little doubt that today's thrust is the final upleg in the Aug-Oct advance. However, the doubt is where this upleg might exhaust itself: at marginal new highs just above 156.00, or closer to 160.00? I really do not know, but because my pattern and momentum work are flying bright yellow caution flags, I will remain on the sidelines.



Mike Paulenoff is a 26-year veteran of the financial markets and author of MPTrader.com, a real-time diary of his technical chart analysis and trading alerts on all major markets. For more of Mike Paulenoff, sign up for a free 15-Day trial to his MPTrader Diary by clicking here.