Perhaps the continued slide in the e-SPZ despite its 40 point, 3-day decline, and a VERY oversold near-term technical condition reflects a very negative juxtaposition of my intermediate-term technicals with the declining price structure. Notice on the enclosed daily chart the cash SPX is heading directly for a confrontation with its 14-month support line, now at 1188, amidst very negative underlying oscillators, which suggests that the trendline likely will be violated on the way to 1170-1160.

MJP 10/06/05

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.