The near-term technical set-up for the S&P 500 Depository Receipts (SPY) argues in favor of an approaching recovery rally into the 135.50-136.00 area in the upcoming hours, once the current low is established, either at 133.50 or somewhere lower. For the time being, though, I am willing to risk only 132.80 to participate in the preferred scenario.



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.