Market Comment 03/20/07

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TradeStalker's
R.B.I. Trader's Update
3/20/2007
(Published Since 1996)
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Dateline: 6:12 pm Eastern time, 3/20/2007

After a choppy start to the day on Tuesday, the upside got in gear and the market went up to the 1422.75-1423.50 resistance zone on the SP futures by early afternoon. After making a double top at 1423.75, there was a pullback to 1418.25 and then the market reversed and rallied back to its highs by the close.

We get the Fed decision on interest rate policy on Wednesdayat 2:15 pm Eastern time. We can look for a couple decent trades before the Fed decision. The market closed right at resistance areas on Tuesday, so an early pullback is likely.If the market opens flat on Wednesday, look for a shorting opportunity early. If that pullback occurs, then the Tuesday afternoon lows would need to hold to avoid trouble. If those areas are not broken, and held, the market will be ok. If they do break, and the market can not quickly reverse back over them, then the pressure could be on the downside into the Fed release.

After the Fed release, there tends to be a couple of quick back and forth moves, and then the market finds a direction and continues in that direction until very late in the day. Look for this to play out on Wednesday. Let the early shake-and-bake run its course, then if the market starts a trend go with it and trail a stop.

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