The S&P 500 Depository Receipts (SPY) fell out of its Friday-Monday sideways congestion (coil) pattern to new reaction lows at 130.20, which was right near my optimal downside target zone of 130.50, and has since pivoted to the upside for a recovery that has propelled prices back up into the congestion area (131.30-132.10). The reversal has power, and if it hurdles 132.10/25 then my work will confirm that a significant near-term low has been establish on the way to 134.50 as an initial target.



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.