Some observations about this morning trading so far: Let's notice that technology names like PALM, RIMM, APPL, INTC, DELL are green, and act very well despite otherwise dismal action in the major averages. This is significant for ETF traders of the QQQQ and SMH.

Moreover, Microsoft (MSFT) made new 11-year lows this morning at 16.10, but has recovered to a few pennies of unchanged (16.42) within a pattern that my work argues ended or is ending the most recent downleg from the February 6 high at 19.93, and perhaps ending a much larger bear pattern off of its November 2007 high at 37.49. If that proves to be the case, then we need to keep an eye on MSFT for an upside reversal very soon (a close above 16.42 for starters, and above 17.10 thereafter) as a sign that the most beleaguered of the Big Cap names is exhausted on the downside, and ripe to lead the market into a recovery rally period.

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.