The time of truth for the e-SPZ approaches as the index slices below key micro support at 1235.75/75, but does not follow-through to the downside (yet). The area between 1235.25 and 1230.75 is the cushion that separates the index from sliding into a much more bearish technical juxtaposition. If 1230.75 is violated, then the e-SPZ should press lower in a hurry to test the Katrina 50% retracement level to 1225-1224, likely on the way to 1218. At this juncture, only a rally above 1239.50 will negate a break below 1230.75.

MJP 09/19/05

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.