Market Comment 04/11/07 - Nightly Update

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TradeStalker's
R.B.I. Trader's Update
4/ 11/ 2007
(Published Since 1996)
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Dateline: 6:31 pm eastern time, 4/11/2007

The market opened just under the key resistance areas onWednesday and sold off fairly hard by late morning. Themarket got its footing and the SP futures bounced back to alast trapped and fib resistance at the 1453.50-1454.00 zoneand stalled before the FOMC Minutes were released. Therelease accelerated the downside, as the market slid to newlows at 1444.50 on the SP futures and 1807.25 on the Nasdaqfutures by 2:45pm. The market managed to crawl out of thehole in the last hour, but the bounce was feeble at best.

** NOTE: DUE TO A VERY SHORT BREAK, THIS WILL THE LASTUPDATE UNTIL SUNDAY EVENING **

The low volatility, narrow range trading at a high, gave wayto lower prices as normally occurs on Wednesday. The dayended with the market moving up in sloppy uptrends. The VIXgave a couple of sell signals, and the volume picked up asprices fell. The ranges were broken on the downside, sothere are some late buyers stuck just above here.

On Thursday, look for a shorting opportunity if there isearly strength that fizzles, especially if that occurs atthe initial resistance areas. It looks like the initialresistance will need to be exceeded and held, in order toget the trends turned back up. If the market cannotaccomplish that, then it is weak and we should see a test ofthe Wednesday lows, at least.

Good Trading,
Mike Reed