Does anyone really know what is going on with this pattern? After breaking yesterday's low at 1216.50, and declining to test more critical support at 1215.25, somehow the index pivoted to the upside and ran back up to 1221.50.  But it did not manage to hurdle the prior micro-rally peak at 1222.50. Where does that leave us (or the pattern)? Since yesterday morning's high at 1225.00, the e-SPU has carved-out a series of lower-highs and lower-lows, which could be the early signs of a new downleg. As long as 1222.50 remains intact as the prior high, the micro pattern will retain its negative bias. A break below 1215.25 should trigger downside acceleration to 1210 initially, and then to 1205/03.

MJP 6/23/05 12:35 PM ET 1219.25

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.