Those following the S&P 500, including traders of the SPDRs (SPY) or the ProShares Short SPY (SH), may want to see the e-mini S&P 500 chart, which provides a highly liquid, near 24-hour picture of the trading pattern. From a big picture perspective, when I look at the action since last Friday's high at 1016 into this morning's pullback low at 985.75, followed by today's sharp upmove, it looks to me like a pullback is complete, and possibly that a new upleg has started that should test and hurdle 1016.

If such a scenario unfolds, then the e-SPU should climb to 1030, and perhaps 1050, as the upside potential off of the 10-month inverted head and shoulders continues to seek its higher measured targets. Only a decline that breaks 995 will begin to compromise the very bullish scenario, while a break of 985.75 will point to 950-940 thereafter. For the time being, the bulls remain in control.

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