The time of truth emerges: the final two hours of trading. If the SPY can claw its way above 142.00/05, we should see upside follow-through into the 142.40/50 area thereafter, which will be a signal that the Friday-Tuesday pullback ended this morning at 141.19 â,“ and that the SPY is in the midst of a revisit of last Thursdayâ,"s high at 143.24.
Conversely, a late-session plunge that breaks 141.19 will be a very negative near-term technical â,"event,â, and will argue that the SPY is undergoing a much deeper correction of the most recent upleg off of the 11/28 low at 137.96.


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.