After some wicked volatility after the Chicago Purchasing Managers report and to a lesser extent after the API stats were released, the Qs have managed to grind their way back to test important micro resistance at 38.74, which if hurdled should trigger additional strength into the more formidable resistance plateau at 38.90. If 38.90 is hurdled, the Qs likely will thrust towards a confrontation with the August 22-24 double-top at 39.18. At this juncture, only a plunge below 38.50 will weaken the developing recovery rally pattern.

MJP 08/31/05

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.