Market Comment 04/02/07

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TradeStalker's
R.B.I. Trader's Update
4/2/2007
(Published Since 1996)
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Dateline: 7:03 pm Eastern time, 4/2/2007

The market opened higher on Monday, but it was sold after the SP futures poked its head just over initial resistance and reversed. From a 1434.50 high, the SP futures pulled back to the open and then when the ISM Index was released,the market dropped fast. The SP dropped to test the 1425.00-1424.50 area and with things quieting down, the market tried to get itself turned back around. Buyers stepped in to get long and the market obliged by moving up to 1433.75 on the SP futures before stalling out around noon. There was a pullback to 1428.50 around 2 pm and then the blue chips rallied to new highs for the day. The Nasdaq didn't get back to its high, yet the SP futures made a 1436.00 high and then the market faded into the close.

The market is obviously range-bound, as it has been noted here. The SP futures settled about 2 points under "fairvalue" so there isn't a lot of comfort being long overnight. On Tuesday we can again look to get short into early strength as soon as the move fizzles. If the market obliges and early strength does get reversed and the market sells off, then be on the alert for another reversal once any downside momentum fizzles and the market gets turned back up. Aside from that, the market should still be "okay" as long as the 1429.00-1428.50 zone on the SP futures and the 1785.00-1784.00 area on the Nasdaq futures are not broken and the market cannot reverse.

Good Trading,
Mike Reed

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