Once again, the market attempts to sell off (perhaps triggered by the imposition of tariffs on Chinese tires by the Obama Admin), but the weakness does not stick. From a medium term perspective, the daily chart of the S&P 500 e-mini contract remains remarkably and potentially explosive on the upside as it fulfills the long standing target zones projected off of the huge base pattern -- at 1100 and then 1200. It is days like today, when the market ignores otherwise bad news, reverses weakness, and climbs into positive territory that returns me to the extraordinary -- and as yet unfulfilled -- upside potential of the inverted Head and Shoulders pattern. This picture also reminds me to continue to consider the possibility, if not growing likelihood, of an upside blow-off... a vertical assault on 1100+ in the hours/days directly ahead. Bullish, in particular, for ETF traders of the S&P 500 Depository Receipts (AMEX: SPY).
