Today's coil in the E-mini S&P 500 continues to converge into the apex of the pattern between 1285 and 1280. The larger pattern from early January argues for a resolution to the upside, and a potentially powerful upmove to new highs above 1301. Conversely, a break below 1280 will be an initial signal of upside failure, while a break below 1276.25 will be signal a confirmed failure on the upside, and a plunge initially towards the 1/25 low at 1262.25. Right now, my work leans to an upside resolution.

MJP 02/01/06

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.