Today's swoon to a low so far at 151.81 has pressed the S&P 500 Depository Receipts (AMEX: SPY) nearly to test the June-July support line at 151.70. The early-session weakness hit a low above the trendline, and has since reversed sharply in what is starting to look like the completion of the correction off of the 153.30 high from yesterday.

At this juncture, a climb that sustains above 153.65 is needed to add some confidence to my initial indication that a low is in place. Conversely, another decline that breaks 151.81 must be contained in the 151.70/60 area to avert a much more serious period of weakness -- which could revisit the late-June lows in a hurry.

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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