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TradeStalker's
R.B.I. Trader's Update
01 / 11 / 2007
(Published Since 1996)
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Dateline: 7:04 pm Eastern time, 1/11/2007
The market opened slightly higher on Thursday, and the trendup continued into early afternoon. The move flattened outand stalled after reaching 1435.75 on the SP futures whilethe Nasdaq futures went to a new high at 1856.25. After apullback to just above updated support, the market bouncedback. However, the move fizzled at that 1434.50-1435.00 zoneand the market closed the day on the soft side.
The market is acting tired up here. The Thursday morningrun-up had the intraday charts looking parabolic, and afterthe flattening out, the market was sold off quite easily.The sentiment has again gone from too bearish to toobullish. Caution is advised on the long side up here fornow. We'll need to see a close above the 1434.50-1435.50zone for price patterns to shape up.
We get Retail Sales before the open on Friday. Right now,the focus should be on shorting bounces under the Thursdayhighs. That side looks like the better odds trade, untilthere is a shakeout then fizzles and reverses. Both thebulls and bears would like to see that 1434.00-1435.50 areareached to sell in to. On the bottom side, if there aren'tbuyers in line at initial support on Friday, then a top ofsome sort may be in place for a few days.
Good Trading,
Mike Reed
Thursday, January 11, 2007
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