The Bottom Line: Unless and until the Q's break below a prior significant pivot (micro) low, like 38.01, the bulls will retain control of market direction (up). Although the underlying oscillators are just about screaming that the longs should be very careful above 38.00, and oil prices are up near $61/bb again, the fact remains that the sellers have disappeared. and likely will remain invisible until 38.01 is broken. In the meantime, we will remain short, but risking only 38.32 in the hopes of "riding out" the final hours of the near-vertical upmove off of last Thursday's terrorist attack.

MJP 07/12/05 11:40 AM ET 38.11

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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.