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TradeStalker's
R.B.I. Trader's Update
3 / 26 / 2007
(Published Since 1996)
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Dateline: 5:50 pm eastern time, 3/26/2007
After a flat open on Monday, the market bounced back a bitand then was hit with selling at 10 am. The selloff wasquick as the SP futures dropped 13 points very fast, thenbounced from the 1433.75-1432.50 area on the SP futures. Thefirst bounce didn't stick, and the market went back to makedouble bottoms at that support. The rally turned out to be agood one, only pausing and pulling back mildly from theupdated 1444.00-1444.50 resistance zone. The SP futuresrallied to just under the 1449.50-1451.00 resistance zonewhile the Nasdaq futures just missed its 1824.00-1824.50area in the final minutes of stock trading. After stocksclosed, the SP futures dropped 4 points to settle well belowfair value.
We get the Consumer Confidence number at 10 am on Tuesday.The SP and Nasdaq futures backed away from what looks likesolid overhead resistance after stocks closed on Monday.Look to short early strength on Tuesday, and especially ifit fizzles at the initial resistance areas. If the marketobliges and pulls back, the first selloff should provide abuying opportunity *if* the selloff selling can stall andturn up from a support zone.
Look for initial resistance at the 1449.50-1451.00 zone onthe SP futures and 1824.00-1824.50 area on the Nasdaqfutures. If the market doesn't reverse from those areas,then we could try for the yearly highs. That looks like along shot right now. But, if the market can get over initialresistance and not quickly reverse, then we could go for the1457.50-1458.00 and/or 1838.50-1840.50 areas before a turnaround.
Look for support at the 1443.50-1443.25 zone on the SPfutures and 1812.50-1812.00 area on the Nasdaq futures. Ifthose are not bought, then the next support is down at the1438.50-1438.00 and 1802.50-1801.75 zones. If those are cutthrough, then the short term key support is at the 1433.75-1432.50 area on the SP futures and 1793.25-1791.00 area onthe Nasdaq futures.
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Good Trading,
Mike Reed
Copyright (c) 2007 by TradeStalker.com, Ft Wayne, IN.TradeStalker Updates may not be redistributed without permission.
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