Correction in Progress for S&P 500

In classic technical fashion, this AM the e-Mini S&P 500 (e-SPM) spiked about 1% above the top of its Apr.-May channel (920) from where it reversed to the downside back beneath the confines of the upper channel line, which much more often than not, is a signal that the most recent upward traverse across the channel is complete- and that a correction already is in progress. The peak at 929.50 ended the upleg from the 4/27 pivot low at 838.50. Since the earlier recovery high, the e-SPM has reversed and declined to an intraday low so far at 908.50. Key near term support rests in the 904.00-902.50 area, which must contain current weakness, otherwise, my work will trigger initial sell signals that will project additional pressure towards a test of more important support at 892-890. For now, as long as the e-SPM sustains above 904.00 -- to 902.50 -- we have to consider that the price structure just might be consolidating between 905 and 920 ahead of tomorrow's Employment Report -- and the potential for another thrust to new high ground near 940-950. MJP 5/07/09 11 AM ET (909.50; SPY 91.42)