We have to be impressed with the relative strength of the DJIA, don't we? With oil prices above $70/bbl., growing perceptions of rising inflation, higher short- and long-term interest rates, and escalating tensions with Iran, and yet the stock market, as measured by the DJIA, remains extremely resilient. In fact, yesterday's decline actually pierced the October-April support line at 11,080, but follow-through selling pressure failed to emerge. Today's upmove is very impressive, and argues that yesterday's low at 11,039 likely ended the correction off of the March 21 high at 11,335, which if accurate, means that the DJIA has started a climb to retest 11,335, and possibly is in a new, powerful upleg that is destined for new all-time highs.

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.