This morning's pop in the Q's extended the rally off of the July 7 low at 36.29 to 39.13 into new high ground. At this juncture my work does not support a sustained rally above 39, which means that as today's action wears on, the "air should be getting thinner and thinner up here." Could the Q's grind still higher in the hours ahead?  Sure, it could go into the 39.20/.30 area as a next target, where I will be inclined to establish new short positions. Let's watch for a while longer.

MJP 7/19/05

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.