A couple of weeks ago, with the oil and the e-SPU trading in tandem to the upside, I wrote about the approaching divergence, largely because oil prices had broken out to the upside from a significant base pattern, while the e-SPU was nearing its measured target of 1220. For the past week or so, the e-SPU has declined in a big way as oil prices have climbed in a big way.  Based on my work, the inverse moves are not yet finished. Oil points to a target around $62.60-$63, while the e-SPU points towards 1185-1182.

MJP 6/27/05 1:45 PM ET 1194.25

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.