My intraday work is warning me that the upmove off of last Wednesday's low at 1262.25 is kaput, exhausted, and in need of a period of rest/retracement. What better time to do this than ahead of the FOMC meeting? I am not expecting the bulls to be able to lift the index above 1293 prior to tomorrow afternoon, while I would not be surprised to some profit-taking that presses the E-mini S&P into the 1285-1283 support zone in the upcoming hours.

MJP 01/30/06

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.