After climbing to marginal new highs at 1241, the e-SPZ pivoted to the downside and plunged to 1231.50, in what has morphed into a micro Broadening Top formation, which is a negative signal that a corrective period likely has started. The initial test of support is approaching along the trendline at 1229.50/00, which if violated, should trigger additional weakness into the 1225-1223 area. Today, the morning mini Head & Shoulders formation failed to break down, which triggered a run to marginal new highs, which trapped the bulls inside of a 3-day Broadening Top formation. For the time being, as long as 1229.50/00 remains intact as the October-November support line, the bulls remain in control, but just barely.

MJP 11/15/05

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.