So far the pullback from yesterday's high at 1227.75 in the S&P e-mini has held week-long trendline support at 1216.50, which has turned the e-SPZ to the upside for a return towards unchanged. However, my suspicion is that even if the index races up to the 1225/27 area, the strength will not be sustainable prior to another loop to retest the 1216 area to complete a complex, multi-day process ahead of the next upleg. For this reason, we should remain spectators for a while longer.

MJP 11/04/05

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.