The Qs have recovered to 38.28 so far in their recovery rally, and appear to have further to climb into the 38.35 area and possibly 38.50/55 prior to the completion of the rally. A sustained climb above 38.50/55, the 50% recovery plateau, will argue for still more strength into 38.80/90, the next immediate target zone. Conversely, a failure to hold above 38.50/55, followed by a pivot to the downside and decline below 38.38, will argue that the recovery rally phase is over, and that the Qs are heading for a retest of the 38.80 prior lows.

MJP 10/28/05

Mike Paulenoff is a 25-year veteran of the financial markets and author of MPTrader.com, a real-time diary of his E-mini S&P and QQQQ technical analysis and trading alerts. For more of Mike Paulenoff, sign up for a FREE 30-Day Trial to his E-Mini/Index Futures diary, or try his QQQ Trading Diary.