Another $1 surge in oil prices thus far today, yet the S&P 500 Depository Receipts (SPY) continue to hold up remarkably well -- considering also that they have climbed 3% in less than 48 hours. Furthermore, let's notice that while the momentum oscillators are relatively overbought on an hourly basis, they nonetheless confirm the two session advance, which usually means that more upside is likely prior to the creation of divergences that point to the approach of a meaningful correction. But the SPY pattern argues for another pop towards 156, and then we will have to re-evaluate the work again.



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.