In our Wrap last Friday, we noted to expect the S&P 500 to pullback further to support before continuing its next up-leg. The index bounced slightly below our expected target in the 2270 range, and ended the week again challenging 2300.

A big catalyst was Friday's positive reaction to the Jobs Report and to the prospect of repeal of financial regulations, which thrust the S&P 500 into a new upleg.

The upleg points to a test of the all-time high at 2300.99 en route to a challenge of the upper boundary line of the post-Brexit channel. That's located in the vicinity of 2310, with upper boundary overshoot into the 2330/35 area.

Only a sharp downside reversal that breaks the rising 20 DMA at 2261.42 will indicate that the post-election rally is exhausted.

You can expand the chart on our Web page.

Have a great trading week!

By Mike Paulenoff

Mike Paulenoff is author of www.MPTrader.com, a real-time diary of his technical analysis & trade alerts on ETFs for precious metals, energy, currencies, and an array of equity indices and sectors, including international markets, plus key ETF component stocks in sectors like technology, mining, and banking. Sign up for a Free 15-day Trial!

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