In a perfect technical world, the little congestion area that has been carved out in the Qââ,¬â"¢s since Thursdayââ,¬â"¢s high at 38.98 should resolve itself to the upside in one more pop to new highs (above 39) prior to the completion of the upleg from the August 10 pivot low at 36.26.  But we donââ,¬â"¢t live in a perfect world, which means that the Q's may not see new recovery rally highs, and instead may break and sustain below near-term support at 38.28, which could trigger downside acceleration that declares last weekââ,¬â"¢s upleg over and out.  For the time being, we will give the rally scenario the benefit of the doubt ââ,¬â€œ at least for the next 1-3 hours.

Mike Paulenoff is a 26-year veteran of the financial markets and author of MPTrader.com, a real-time diary of his technical chart analysis and trading alerts on all major markets. For more of Mike Paulenoff, sign up for a free 15-Day trial to his MPTrader Diary by clicking here.