I commented in the just-posted chart text that the decline in the E-mini June S&P has been extremely orderly--almost stubborn--and this is happening after an upmove from 1146 to 1199 since May 13! So the sellers (hedge funds?) still are not around. Where are they? Well, just maybe they are already short--very short--and either do not have the firepower, or the confidence to get shorter and just might be a hair from taking the hit altogether and covering the remainder of their positions. And that could mean higher prices are directly ahead. The only question might be how much higher? And of course, we are heading for a 3-day weekend at month-end, which usually implies a bullish seasonal factor.  So, let's be aware (and at the very least, out of our short positions) that the odds may overwhelmingly favor the bulls after tomorrow's morning session.

MJP 05/25/05 1:00 PM ET 1189.00

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.