During the past 90 minutes, the SPX has rolled over into a nosedive that my work considers part of a corrective process that began at Thursday's high of 1318.16, and which could extend into the 1305 to 1300 support zone prior to my expectations for the emergence of another potent upleg. Only a sustained break of 1297.50 will argue that the SPX is heading for a very deep retracement of the upleg off of Monday's low at 1280.74, and only a break of 1280.74 will wreck and reverse my current constructive 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.