The overall pattern in the S&P 500 displayed on the enclosed chart shows a potentially big double bottom formation at 1220-1226, which must hurdle 1280 to trigger upside confirmation that projects to an optimal target of 1320 thereafter.  However, from a near-term perspective, the SPX must claw its way above key resistance at 1262 and 1274 to have a realistic chance to trigger the larger double-bottom pattern.  For the time being, my work argues for a hurdle of 1262, at which point we will re-evaluate the upside potential.

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.