The battle lines have been drawn in the S&P e-mini: key micro resistance hovers at 1208.75, while key micro support resides at 1192.50. Whichever side of the range is penetrated first should trigger follow-through of 5-8 points in the direction of the breakout. After the bears' downside failure to break the lower side of the range, the bulls are now taking their best shot at 1208.75.

MJP 7/05/05 11:30 AM ET (1207)

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.