Another $1 surge in oil prices thus far today, yet the S&P 500 Depository Receipts (AMEX: 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.

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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