The tension in the market today is palpable, isn’t it? The dollar goes down, and stocks, metals and commodities go up. The dollar rallies off of oversold, and stocks, metals and commodities pull back. That said, however, let’s notice on the hourly chart of the S&P 500 emini futures contract that after making yet another new recovery high this morning at 1103.25, the emini S&P has sold off to nearly unchanged and more importantly is approaching an important test of key near-term support at 1093-1090.

If violated and sustained, then the price structure should press lower to more important support at 1086.75 -- and its related ETF, the S&P 500 Depository Receipts (AMEX: SPY), along with it -- in what will begin to look like the initiation of a significant correction of the near-vertical November upleg.

By Mike Paulenoff

Mike Paulenoff is author of the MPTrader.com (www.mptrader.com) , a real-time diary of Mike Paulenoff's trading ideas and technical chart analysis of

Exchange Traded Funds (ETFs) that track equity indices, metals, energy commodities, currencies, Treasuries, and other markets. It is for traders with a 3-30 day time horizon, who use the service for guidance on both specific trades as well as general market direction

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