The pattern carved out since the February 7 pivot low at 1253.61 argues, optimally, that the low ended all or part of the corrective process off of the January 11 high at 1294.90. All of the action from the February 7 low appears to represent a recovery rally phase -- an incomplete recovery rally phase -- that has higher to climb to retest the February 7 high at 1274.56, if not the 1280 area in the upcoming hours and days. As long as the series of higher lows from February 7 remain intact and viable, I will have no reason to alter my optimal outlook.

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.