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TradeStalker's
R.B.I. Trader's Update
4/10/2007
(Published Since 1996)
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Dateline: 5:37 pm Eastern time, 4/10/2007
The market opened lower on Tuesday, right in the 1453.25-1452.25 support zone on the SP futures and off of a 1452.50low, they quickly ran up to 1456.50. After a dip, the buying came back and the market bounced to the 1458.00-1458.50 area and then backed off. Another test of that zone left a 123 top in place and the SP futures pulled back to the 1453.25-1452.25 area again by noon. The market refused to break and a choppy rally was underway. The market grinded higher and tested that 1458.00-1458.50 area once again with an hour left in the trading day. However, the move reversed after reaching 1457.75 on the SP futures and they pulled back 1.50points. The dip was bought and they moved on up to the1458.00 level on the SP futures, but after the 4 pm close for stocks, the SP futures pulled back 2.25 points and settled under fair value.
On Wednesday we get the FOMC Minutes at 2 pm eastern time.The Dow cash traded in a narrow 39 point range on Tuesday.The SP futures have had small ranges for 4 straight days now. The 1458.00-1458.50 area on the SP futures and the 1833.25-1834.75 area on the Nasdaq futures have turned the market back 3 times now. Those have been probed enough times to make them key resistance areas.
That said, unless / until the market can break out of its narrow ranges, be a buyer on a test of the 1452.75-1452.25area on the SP futures and the 1820.50-1818.50 area on the Nasdaq futures IF the move stalls and/ or reverses back up.On the other side of the coin, if there is another pop that fizzles at the 1458.00-1458.50 area on the SP futures and/or the 1833.25-1834.75 area on the Nasdaq futures, it will setup a good shorting opportunity with a tight stop. After the Fed Minutes are released, expect the trading ranges to be broken if they haven't been already. If there is a breakout either way, then that area should turn into a new support or resistance area if the market accelerates.
Get my nightly support and resistance zones that I'll be buying and selling against the following trading day along with my bullish or bearish outlook for the next day's market action. Yes, we have a FREE TRIAL!
http://www.tradestalker.com/
Good Trading,
Mike Reed
Tuesday, April 10, 2007
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