Heading into the final two hours of trading, the e-mini S&P 500 continues to consolidate at the very upper end of its upmove from Friday's low at 1147.50 to this morning's high at 1196.25. As long as intraday support at 1188.50/00 contains any forthcoming weakness, the pattern overwhelmingly argues for upside continuation that propels the e-SPZ to new recovery highs above 1196.25 into the 1202-1208 next target zone. This is where my work indicates that a rest and corrective process should emerge.

Conversely, a sustained intraday breach of 1188.50/00 could trigger "mini" long liquidation that presses the index into a test of near-term support between 1180 and 1174.00 prior to upside continuation.

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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