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TradeStalker's
R.B.I. Trader's Update
4/9/2007
(Published Since 1996)
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Dateline: 6:02 pm Eastern time, 4/9/2007
The market opened higher on Monday, but that early strength was sold and the market chopped its way down to the 1452.50-1452.00 area on the SP futures about 45 minutes into the trading day. Off of a 1452.50 low, the market bounced back to test the highs and then pulled back a bit. The small dip was bought and the market moved to new highs for the day by1 pm. Not too long after the Intraday Update was sent, that 1456.00 level broke and the market backed off to test the lows. The lows held, however the rebound was wimpy as the SP futures backed away twice from just under the 1456.00 level.
The ranges are really contracting and this low volatility should abate soon and give us a decent amount of volatility,or a strong trending move. The market acted tired on Monday afternoon and the upside momentum has pretty much stalled out. The moves down were quicker on Monday. However, absent much on the economic calendar until the FOMC Minutes are released on Wednesday, the market averages are stuck in loose little ranges. The Nasdaq is looking vulnerable and if it breaks by much, then the market is likely in for a decent pullback.
On Tuesday we need to see the initial resistance areas exceeded to avoid potential trouble. If there is a move over those initial resistance levels, it would need to stick and bring in more buying. So, if the market does get through that resistance but then reverses back down, it could be a red flag for more downside.
Good Trading,
Mike Reed
Get my trading plan every night complete with my support and resistance numbers for the emini's: SP500, Nasdaq, andRussell. The most accurate, consistant trading plan on the net! Get our unlimited FREE TRIAL!http://www.TradeStalker.com
Monday, April 09, 2007
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