Purely from a near-term technical perspective, if I look at the pattern in the QQQQ, the downleg from the August 31 high at 46.12 to yesterday's low at 44.30 has its 50% recovery resistance plateau at 45.21, with the 62% recovery resistance plateau at 45.43. An upside hurdle of the former likely will lead to a challenge of the latter, which my work argues should put a lid on this advance, if a new downleg in the QQQQ started up at 46.12.

Based on the inverse ETF, the QIDs, a 50% "correction" of the upleg that started at the July 31 low of 42.68 into yesterday's high at 46.19 represents a decline into the 44.45/40 area, while a 62% retracement of the upleg will imply weakness into the 44.00 area prior to a resumption of the dominant (up) trend.

Thus far, the QQQQ have tested, and so far have held, at the 50% resistance plateau of 45.20, while the QID's so far have held in the vicinity of the 50% support level of 44.45/40.

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.