Market Comment 04/03/07 - Nightly Update

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TradeStalker's
R.B.I. Trader's Update
4/3/2007
(Published Since 1996)
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Dateline: 6:45 pm Eastern time, 4/3/2007

The market gapped up on Tuesday, and when the Housing Numbers were released the market accelerated higher. The move was pretty much over with after 90 minutes of trading,and then the market traded sideways into the afternoon. An attempt to get another run-up going was stopped cold in that1449.75-1451.00 resistance zone on the SP futures, and off of a 1450.50 high the market pulled back. However, the 1446.25-1445.75 area on the SP futures held all day, and pulling back to 1446.25 the market churned sideways into the close.

It's a tough call up here, but right now it appears that we could have a little double top in place. The rally lost gas after the early sprint, and the bids dried up on the punch through 1450 on the SP futures. The little rejection of that area was similar to how the last top up here was put in place. The Nasdaq futures made a high in the first 90 minutes of trading, and failed 3 times to get through the1819.00 level. That said, the market DID hold the 1446.25-1445.75 area on the SP futures all day Tuesday. If that area is not defended, then we could see the market roll over and begin downtrends.

On Wednesday it will take a move through the 1450.50-1451.00 area, that isn't quickly reversed, to keep the bears from trying to press the market lower. If there is no early strength, then that 1446.25-1445.75 area on the SP futures should be key to the short term. If the market pushes through the initial support, and there is not a quick snap-back, then there could be a rush for the exit door.

Good Trading,
Mike Reed

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