Based on my work, the outlook for oil prices will not be supportive for equities in the near future, and neither will the outlook for 10 -ear yield, but the bulls still remain in directional control.  During the past week or so, crude oil prices have consolidated between $55 and $52 per barrel, in a pattern that has taken the shape of a bull flag consolidation, ahead of an approaching thrust to test and likely hurdle the most recent recovery peak at $55.55.  If $55.55 is hurdled and sustained, my work points to upside continuation in the area of the all-time April high at $58.28.  Only a failure to push above $55.55, followed by a decline below $52.00 will neutralize my current constructive technical outlook.

MJP 6/13/05 12:50 PM ET ($54.20)

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.