Market Analysis for Jul 19th, 2005

This morning's pop in the Q's extended the rally off of the 7/7 low at 36.29 to 39.13 -- into new high ground. As we mentioned to subscribers early today, 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 -- 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.

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