The SPYââ,¬â"¢s broke out of a 3-month base formation on Augst 18, hit an initial high at 130.69, and then pulled back to the breakout level at 129.40/20.  Then last week, they pivoted to the upside, initiating a spike to todayââ,¬â"¢s new recovery high at 130.82.  This represents a classic bullish technical scenario for the S&P.

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.