The fact that the SPDRs (AMEX: SPY) have been circling unchanged for the entire session is fairly remarkable when we consider that it has climbed 3.3% in the last 7 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.

By Mike Paulenoff

Mike Paulenoff is author of the MPTrader.com (www.mptrader.com) , a real-time diary of Mike Paulenoff's trading ideas and technical chart analysis of Exchange Traded Funds (ETFs) that track equity indices, metals, energy commodities, currencies, Treasuries, and other markets. It is for traders with a 3-30 day time horizon, who use the service for guidance on both specific trades as well as general market direction

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