Market Comment 12/19/06

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TradeStalker's

R.B.I. Trader's Update

12/19/2006

(Published Since 1996)

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Dateline: 5:47 pm Eastern time, 12/19/2006


The market gapped down on Tuesday's open and after about 10
minutes of selling the market turned up. The 1426.50 low on
the SP futures and the 1786.50 low on the Nasdaq futures
were one point above the last support zones and the rally
lasted into late morning. After reaching 1434.50 on the SP
futures and 1806.50 on the Nasdaq futures, the market turned
soggy and sold off into early afternoon. The pullback was
bought and after some churning there was an attack of the
early highs. Once those were cleared, the market caught a
strong bid and moved higher into the final hour of trading.
The SP futures rallied to 1440.50 while the Nasdaq futures
made it to 1814.50 and then backed off into the close.

We had record high print and close on the Dow on Tuesday.
Neither the SP500 nor Nasdaq 100 could do the same, but they
rallied back pretty well after the early hit they took. The
problem is that the market closed poorly. Both the SP and
Nasdaq futures settled well under fair value and the futures
would need to open about 2.00 points higher on the SP
futures and 4.00 points higher on the Nasdaq futures to be
in neutral mode.

On Wednesday, look for the "sell early, buy the first decent
pullback" type of pattern early in the day. Thereafter,
expect more two-sided action and try to only get involved at
extremes on both sides.

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