Market Comment 5/02/06

The market opened higher on Tuesday, then sold off for about
40 minutes. The dip was bought and the market chopped higher
into early afternoon. The SP futures found difficulty around
its 1318.00-1318.50 resistance while the Nasdaq waffled
around its 1705.00 resistance level, and the market sold off
grudgingly until the last hour of trading. The SP futures
made it back to test the high while the Nasdaq sagged lower
into the close.

If there is follow through buying early on Wednesday, be on
alert for a reversal after the first 20-40 minutes of
trading. Thereafter, if the market obliges and we get a sell
off, look for that first drop to be met with buying as soon
as the momentum fizzles. We should have more back and forth
type of trading action until all of the averages get in
sync.

Good Trading,
Mike Reed