After this morning's swoon to new reaction lows at 129.59 in the SPY, Fed Chairman Bernanke released his prepared text ahead of his Congressional testiimony -- and wow!  The indices rocketed in reaction to his clear suggestion that the Fed may pause in its rate hike cycle. As we can see from the enclosed hourly chart, the price structure is pushing up against critical near-term resistance between 131.00 and 131.13, which if (when) hurdled, the SPY should accelerate towards a retest its April 20 high at 131.86. At this juncture, only a plunge that breaks 129.59 will weaken the near-term chart pattern.

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.