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TradeStalker's
R.B.I. Trader's Update
1/10/2007
(Published Since 1996) .
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Dateline: 6:18 pm Eastern time, 1/10/2007
The market opened with gaps on the downside on Wednesday.After reaching 1412.25 on the SP futures and 1798.00 on theNasdaq futures in the first 10 minutes of trading, themarket reversed and rallied steadily into late morning. TheSP futures reached 1419.75 while the Nasdaq futures made a1812.25 high before noon and a little pullback followed.After a double bottom at 1415.00 reversed, the market wenthigher again. Led by the Nasdaq, the market put together asteady grind higher right up to the 1424.75-1425.25 zone onthe SP futures at the close.
The market has pretty good momentum as it gets back to thecurrent lid on the SP futures. With 2 days of tech leadingthe rallies, we need to see the rest of the market begin toplay catch-up. The breadth was flat on Wednesday, the volumewas light, and the NYSE Composite actually *lost* almost 21points for the day. That said, with Wednesday being a trendday, it looks like we should see more two-way moves onThursday. The first trading opportunity will likely set upon the short side, however the trends are up as long as theinitial support areas can hold on a pullback.
If there is early strength, beware of a reversal in thefirst 40 minutes of trading. If that sets up, we could see apretty quick selloff occur. If that plays out, be ready forthat first shake-out to be bought --especially if the marketdrops back to the initial support and then the move fizzlesand turns around. If there is a selloff and it cannot holdat initial support areas, then we could see the market getin trouble again.
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Good Trading,
Mike Reed
Wednesday, January 10, 2007
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