The SPY's pivoted off of yesterday'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. Yesterday, I had identified 126.60/20 as the likely target zone for the conclusion of the pullback. Today's strength confirms 126.01 as the low of the pullback, and the inaugural point of a new rally leg that should test and hurdle Friday'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).
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.
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