I have been "friendly" to the CHN since the beginning of 2006 (see my Jan 10 update @$28), which was about two weeks after it pivoted to the upside off of its December 18 corrective low at 22.50.  My work argued then -- and still argues now -- that the CHN is in the midst of an explosive upmove after ending a major corrective period from Jan 2004 (47.85) to Dec 2005 (22.50).  Based on my work, the CHN completed its initial upmove in a new upleg at the Feb 7 high of 31.14, pulled back to 26.55 on March 8, and since then appears to have entered a new upmove that should hurdle the Feb high on the way to test two-year resistance in the vicinity of 34.00/29 -- which, if hurdled, will project to 40 in the subsequent weeks and months.  At this juncture, only a break of 26.50 will compromise my current 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.