Daily Minute with Mike Paulenoff for February 28

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By Mike Paulenoff | Published 02/28/2006 | Stocks | Unrated

Daily Minute with Mike Paulenoff for February 28

Given the inability of the NDX to follow through from yesterday's recovery high close, along with the Google Massacre and the damage sustained to the otherwise potentially bullish pattern off of the February 10 low, I am considerably less confident in this morning's constructive outlook than I was a few hours ago. In fact, all of the action from the February 10 low into today's high now resembles a recovery rally within a larger downside correction, rather than the start of a new upleg. Barring a sudden upside reversal and climb above yesterday's high at 1701.10, we should expect more weakness that presses the NDX into a test of important support between 1650 and 1630, which if violated should trigger a plunge to 1600-1580 thereafter.

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.

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