Market Comment 03/19/07

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TradeStalker's
R.B.I. Trader's Update
3/19/2007
(Published Since 1996)
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Dateline: 6:23 pm Eastern time, 3/19/2007

The market gapped up on Monday, but the early strength wassold about 10 minutes into the day. The SP futures dropped from 1409.50 to 1404.75, and that first dip was bought. After going back to test the highs, the market took a brief rest, then punched on through and rallied into the late morning. After the Intraday Update, the SP futures pulled back to 1410.75 (1 tick under support), and then bouncedback to test the highs. The early highs were not exceeded though, and they pulled back to 1411.00 with 30 minutes left in stock trading. With that as a floor, the market held together and the SP went to a 1416.00 high just before settlement.

We get the Fed decision on interest rate policy on Wednesday. The market looks like it wants to move higher here short term. However, we will likely get more two-sided action on Tuesday. The market will be in "buy the dip" mode unless / until there is a break and hold under the 1411.25-1410.75 zone on the SP futures. There was good buying on the pullbacks to that area on Monday. If that area is tested again on Tuesday and there is *not * another rebound, then we could roll over and retrace a good deal more of the recent rally.

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