As the cash SPX approaches last Friday's recovery high at 1280.42, my near-term chart work remains in relatively healthy condition, which supports upside continuation that hurdles 1280.42 on the way to my next optimal target zone of 1286-1287. However, the "swing" measurement off of the intial upleg from May 24 to May 26 projects the SPX to a potential near-term target of 1292-1295 prior to the conclusion of the recovery rally phase. At this juncture, only a failure to hurdle 1280.42 followed by a plunge that breaks 1259.84 will wreck the constructive outlook.

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.