Here is the big picture of the S&P 500 Depository Receipts (SPY), accompanied by the juxtaposition of the 9- and 20-day "Adaptive Moving Averages," which are similar in sensitivity to the exponential moving averages. In general, what we see if a very neutral near-term picture, with the moving averages flattening out and trying to turn up. From a price perspective, since the March 17, low let's notice that the SPY has carved out a series of higher-highs and higher-lows, or a minor uptrend. Yesterday's powerful thrust appears to be the next attempt to put upside pressure on the "flat tops" established during the February-April timeframe, which if hurdled should unleash a powerful upside follow-through that tests the major resistance line around 143.00. At this juncture, only a decline that breaks 133 will begin to compromise the current constructive pattern.



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.