Market Comment 12/18/06

.................................................

TradeStalker's

R.B.I. Trader's Update

12/18/2006

(Published Since 1996)

...............................................


Dateline: 6:35 pm Eastern time, 12/18/2006


The market opened higher on Monday and rallied on up to test
the 1443.75-1444.75 area on the SP futures. We were using
that as a shorting zone with tight stops, and after making a
1444.00 high on the SP futures about 30 minutes into the
day, the market obliged and sold off into early afternoon. A
bounce off of a 1435.75 low fizzled out around 2 pm, and
then the downside reasserted itself. The market sold off to
make new lows at 1432.25 on the SP futures and 1804.50 on
the Nasdaq futures with less than an hour left in the
trading day. That was at the short term key support at the
1432.50-1431.50 area on the SP futures, and the market
bounced to close on a little upswing.

We get the PPI before the open on Tuesday. The market again
made its highs in the first hour and its lows in the last
hour on Monday. In order to turn things back around, we
probably need to see the market washout early in the day,
then turn around and rally back. However, as things stand
right now, the bears should be in control unless the initial
resistance areas can be cleared, and then hold on a
pullback. Unless that occurs, the short side should offer
the better trading opportunities.

Get my nightly support and resistance zones that I'll be
buying and selling against the following trading day along
with my bullish or bearish outlook for the next day's market
action. Yes, we have a FREE TRIAL!

http://www.tradestalker.com/

Good Trading,
Mike Reed