The tension in the market today is palpable, isn’t it?  The dollar goes down, and stocks, metals and commodities go up. The dollar rallies off of oversold, and stocks, metals and commodities pull back.

That said, however, let’s notice on the hourly chart of the S&P 500 e-mini futures contract. After making yet another new recovery high this morning at 1103.25, the e-mini S&P has sold off to nearly unchanged and more importantly is approaching an important test of key near-term support at 1093-1090. If violated and sustained, then the price structure should press lower to more important support at 1086.75 -- and its related ETF, the S&P 500 Depository Receipts (SPY), along with it -- in what will begin to look like the initiation of a significant correction of the near-vertical November upleg.

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