My work argues that last week's pivot low off of the rising 50 DMA started a new upleg that likely completed its initial rally phase this morning at 11,117. After a brief pause-pullback, the DJIA should rally to new 2006 highs above 11,159 on the way to a final target zone of 11,250-11,320 to conclude the entire advance off of the October 2005 low at 10,157. In other words, the bull phase is not over yet, but it is in the 11th hour prior to a significant correction.

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.