All of the action off of Friday's high at 1224.50 in the emini S&P 500 exhibits corrective form, which "warns" us that when it is complete another upleg should be forthcoming that thrusts the e-SPZ to new highs projected into the 1232-1240 target zone.

With that in mind, we need to ask the question: Is the pullback already finished? As long as today's low at 1214.75 remains intact, my optimal scenario indicates that a new upleg is underway. However, if the e-SPZ loops down and breaks 1214.75, then the correction will continue into the 1211-1205 target zone prior to my expectation of the start of a new upleg.

At this juncture, only a sustained breach of 1202 will weaken the bullish technical set-up off of the November 3 low at 1179.50.

By Mike Paulenoff

Mike Paulenoff is author of MPTrader.com (www.mptrader.com), a real-time diary of his technical analysis and trading alerts on ETFs covering metals, energy, equity indices, currencies, Treasuries, and specific industries and international regions.

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