Earlier when the QQQQ was at 41.60, they had retraced just about 50% of the entire upmove from yesterday's low at 40.98 to this morning's high at 42.19, which is where they held and turned back to the upside. The initial upside exhibits bullish form, while the intraday weakness exhibits corrective form and tells me so far that the Q's have additional upside remaining prior to the completion of a larger developing recovery rally period. My sense is that the Q's are only partially finished with the advance, and that they will thrust towards a test of 43.00 in the upcoming hours.



Mike Paulenoff is a 26-year veteran of the financial markets and author of MPTrader.com, a real-time diary of his technical chart analysis and trading alerts on all major markets. For more of Mike Paulenoff, sign up for a free 15-Day trial to his MPTrader Diary by clicking here.