Finally, the Q's are making some headway on the downside, proving that the very vulnerable technical "set-up" that I have been squawking about for 48 hours really did exist. What now? Notice that the price structure has inflicted some damage to the hourly chart structure by breaking below key micro support points at 39.88 and 39.70, which should trigger downside acceleration towards more critical support at 39.55/50. At this juncture, only a rally back above 39.95 will neutralize current weakness.

MJP 8/4/05

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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.