If the larger pattern in the PowerShares QQQ Trust (Nasdaq: QQQQ) off of the June high at 37.29 to Tuesday’s low at 34.77 represents the initial downleg in an intermediate-term correction of the March-June advance, then all of the action off of this week’s low into today’s high likely represents a completed or very nearly completed recovery rally, ahead of the start of another downleg to finish the larger pattern. If my pattern work proves accurate, then in the hours directly ahead the QQQQ should peak and roll over in the vicinity of 36.30/60, towards a retest of 34.77 on the way to 33.80/40.

Mike Paulenoff is a 26-year veteran of the financial markets and author of MPTrader.com.