Although the Q's did break below 37.24 earlier this morning, the downside follow-through only amounted to a few cents prior to a pivot to the upside and a run to 38.40. Thus far, the pattern carved out of yesterday's high at 38.46 to this morning's low of 38.17 appears to be a minor pullback within a still viable upleg off of last Thursday's low at 36.29. At this juncture, we need to see a break of 38.17 to press the Q's to test more critical support between 38.01 and 37.91 -- to trigger some meaningful technical damage to the near-vertical upmove.

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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.