So far, this has been a remarkable session, with the SPY holding nearly all of its gains, while oil gyrates from $113 to $116/bbl., gold plunges $25/ounce (I could cry), and the dollar strengthening for no apparent reason. In any case, investors have decided to buy any and every pullback in the SPY.

Why? My sense is that the dollar is turning, and NOW that perhaps foreign investors are faced with that prospect, they are extremely anxious to buy "cheap" U.S. equities while the exchange rate is very beneficial (before the dollar really starts to lift). In any case, my intraday work is telling me that the SPY should pop towards 140.00 prior to a needed pullback, but that if it breaks the prior dip this AM at 138.26, to exit my long position ahead of additional weakness into the 137.00 area. I will post a "bigger picture" outlook in this afternoon.

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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