Market Comment 01/17/07

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TradeStalker's
R.B.I. Trader's Update
1/17/2007
(Published Since 1996)
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Dateline: 6:58 pm Eastern time, 1/17/2007

The early action was choppy between the 1439.75-1440.25 resistance and the 1436.50-1436.25 support on the SP futures. The market finally broke out on the upside just before noon and the run-up took the SP futures to 1442.75 and the Nasdaq futures to 1857.75 before going into another small range. The SP futures held updated support until afterthe Fed Beige book release. A quick pop to 1443.00 on the SP futures was reversed and the break took the market back to test the lows. The SP futures fell to the 1435.75 level while the Nasdaq futures made a low at 1838.50, and then themarket firmed into the close.

We get CPI before the open on Thursday. At 10 am there is the Leading Indicators release and then we get the Philly Fed release at noon. The market is acting top heavy up here and at best a trading range could be developing. The market doesn't like to stay in the new high territory for very long before getting sold. On the other side, buying continues around the 1436.25-1435.75 zone on the SP futures.

One side is going to give here pretty soon. The short side should offer the better setups as long as the Nasdaq stays in its downtrend. If somehow there is a rally to the 1443.75-1444.50 area on Thursday, be on reversal alert.

Good Trading,
Mike Reed