Market Comment 4/25/06

Dateline: 7:03 pm Eastern Time, 04/25/2006

The market offered us a gift on Tuesday morning. We wanted
to short early strength in the 1315.50-1316.50 area on the
SP futures and the 1721.75-1722.75 area on the Nasdaq
futures. The early reversal from highs at 1316.50 on the SP
futures and 1723.50 on the Nasdaq futures set up a nice
entry on the short side, and the market obliged by selling
off pretty hard.

By noon the SP futures reached 1305.00 while the Nasdaq
futures fell to a 1706.50 low. There was a feeble bounce
into the early afternoon, and then the market made a stab at
lower lows. Those new lows were bought, and the market went
into a choppy trading environment. There was a pop to
1309.75 after the Intraday Update, but trends were pointing
down and the market backed off to test the lows again. With
an hour left in the trading day, that was it for the
downside as the market bounced back into the close.

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Good Trading,

Mike Reed