The E-SPU plunged about 8 points in a matter of minutes after hitting an intraday high at 1245.25. Today's high, if not hurdled, represents the third high in the 1245-1249 area since July 29, which to me also represents further development of a meaningful topping pattern to the July 7 upleg (from 1170.75) and to the year-long upleg (from the 1060 level). We remain short, with stops lowered to just above today's high.

MJP 8/10/05

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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.