My work argues that yesterday's "Yuan spike" to new 2005 highs at 1246 represents the high for the upleg that began at the July 7 high, and possibly the high for the upmove off of the April 18 low at 1140.75. If such proves to be the case, then the s-SPU is in the early stages of a corrective period that should press the price structure beneath key support at 1225.50-1224, on the way to the 1210 next target point -- and possibly a test of the rising 200-day moving average (1191 now) thereafter. In the event the index manages to hurdle and sustain above 1246, then my work will point to 1256-1260 as the next optimal bullish target zone.

MJP 7/22/05

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.