Although the Nasdaq-100 (QQQQ) has the right structure and look of an incomplete upleg off of yesterday's low at 46.71, my overall work argues that in the vicinity of 47.70 up to 48.10 this rally will fail and the Q's will reverse into a decline that will retest 46.71, and perhaps press into the 46 area. In other words, I am viewing this upmove as an intervening rally between two declines of a correction. The first decline started after last Friday's peak at 48.32 and ended yesterday at 46.71. The current rally should run a bit longer, into tomorrow morning perhaps, prior to the anticipated downside pivot reversal.

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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.