Market Comment 01/18/07

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TradeStalker's
R.B.I. Trader's Update
1/18/2007
(Published Since 1996)
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Dateline: 7:01 pm Eastern time, 1/18/2007

The market rallied early, but after 25 minutes of trading the market reversed course and hit an air-pocket. The SP futures fell to 1432.50 while the Nasdaq futures dropped to1815.00 and the move lost its momentum. After a pop and retest, the market made its way higher into lunchtime trading. A pop off the Philly Fed release was sold and the market backed off. The market went into a trading range, holding just under 1437.00 on the SP futures while theNasdaq futures trended lower. After the Intraday Update there was one more pop that stalled just under 1437 and the market spilled to new lows. The drop stopped at the 1431.00-1430.00 support on the SP futures and at 1802.00 on theNasdaq futures by 3 pm, then the market firmed into the close.

The market is still acting poorly and with the Nasdaq breaking down, the market has a lot of mending to do to get back into decent shape. The only good news from Thursday'saction was that the 1431.00-1430.00 area on the SP futures held. In any case, the trends will continue to point down unless / until the initial resistance areas can be cleared,and held. Unless that occurs, shorting the bounces as soonas they fizzle should offer the better setups.

Good Trading,
Mike Reed