Market Comment 12/28/06

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TradeStalker's

R.B.I. Trader's Update

12/ 28 / 2006

(Published Since 1996)
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Dateline: 6:49 pm Eastern time, 12/28/2006

The market opened slightly lower on Thursday and then popped
back up. That bounce was sold, and after a quick drop the
market bounced back once again. And once again, the move
fizzled and the market stair stepped lower into lunchtime
trading. While reaching a low at 1433.00 on the SP futures,
the Nasdaq futures made a higher low for a switch, and the
rest of the market followed the Nasdaq's lead. However, the
rally fizzled with about an hour left in the trading day,
reversing after reaching the 1438.00 level on the SP futures
and 1783.50-1785.50 area on the Nasdaq futures. Selling came
in near the close, as the SP and Nasdaq futures spiked down
to 1432.50 and 1772.00, respectively, then recovered a bit
into the close.

We will be taking a New Years break, so the next update will
be on Tuesday night -- after the Tuesday trading session is
complete. We want wish all of our loyal readers a healthy
prosperous New Year.

Whether or not the market tries to rally into the end of
month/quarter/year is up in the air right now. Both the
bulls and bears would like another shot at the highs made
late on Thursday. As I stated last night, those resistance
areas just above should be lids here short term. If they get
back up there and stall out like they did on Thursday, "load
the boat" on the short side. On the bottom side, as long as
the bulls can defend the initial support zones, nothing bad
will happen.

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