SPY Update/Outlook (by Leaf_West)

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Sitting here pre-market on Tuesday I thought I should update my market outlook.  The following chart lays out my current reading of the market/SPY … I do think we are going to pull-back/consolidate here for 2-3 days. Traders have to remember that pull-backs from Ascending Triangle Patterns in bull markets happen 57% of the time and take between 9 and 11 days to complete (from Bulkowski's studies). Also note that Ascending Triangles hit their pattern targets 75% of the time.

I think that $135 round number will be a nice pull-back target and $140 a nice upside target. Looking at time fibonacci targets, the low and pattern break-outs fit nicely so I am looking at the 1.382 mark as the upside target date … that would take us out to Friday May 20th as a possible topping date.

SPY_May3, 2011_Daily
Cheers … Leaf_West