In the hour that has lapsed since the FOMC announcement, SPY has gyrated from 132.76 to 132.06, back up to 132.44 in what looks like another attempt to thrust to new highs towards the top of the broadening top pattern, at 133.00.  At this juncture, only a decline the breaks and sustains below the prior intraday pullback low at 132.06 will be our initial indication that the SPYââ,¬â"¢s have hit intraday upside exhaustion.  Barring such a decline, letââ,¬â"¢s expect another loop up into new recovery high ground ââ,¬â€œ and possibly into the 133 area, where we want to add to our current 50% short position.

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.