After identifying the constructive profile exhibited by the Q's each time it probed its lower channel zone since June 27, the powerful vertical upmove since yesterday morning now compels us to examine the behavior of the Q's each time it has approached its upper channel zone since June 17, which shows that the resistance area has put a lid on prices in each instance. The Q's have pushed to an intraday high at 37.65, which is just 5 ticks or so from the top of its upper channel resistance zone. Right now, my intraday work argues only for a pause, rather than a reversal from the 37.70 area. Instead, I will not be surprised to see the Q's hurdle 37.70 on the way to my next, and more important target of 37.95-38.05.

MJP 07/08/05 2:30 PM ET 37.66

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.