The action during the past couple of hours suggests strongly to me that the bulls are pretty tired and right now do not have much if any power left to propel equities higher. If that proves to be accurate, then we should expect the e-SPU to head lower after this brief pause -- towards a confrontation with important support at 1200-1196. A break below 1196.25 is needed to trigger larger, more powerful sell signals.

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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.