The fact that the SPDRs (SPY) have been circling unchanged for the entire session is fairly remarkable when we consider that it has climbed 3.3% in the last seven sessions. In fact, let’s also notice that every pullback within the upmove has established a higher low – this morning’s swoon to 152.62 included, which preserves the integrity of the immediate- and near-term uptrends. To compromise the immediate-term uptrend, the SPY would have to break and sustain beneath this morning’s low at 152.62. Barring such a break, I am viewing current action as another consolidation period within the dominant uptrend, which should resolve itself to the upside towards my next target of 154.



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.