Market Comment 04/18/07 - Nightly Update

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TradeStalker's
R.B.I. Trader's Update
4/18/2007
(Published Since 1996)
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Dateline: 6:02 pm eastern time, 4/18/2007

The market opened lower on Wednesday and buying startedimmediately. The initial bounce failed and the market backedoff to test the opening lows and the market quickly reversedback to the upside. The move stopped at 1481.00 on the SPfutures and the market softly pulled back into earlyafternoon. Off of the 1477.50 low the market turned back upand moved parabolic to 1484.50 on the SP futures and 1853.00on the Nasdaq futures. That was reversed and the market soldoff fairly hard in the last 30 minutes of trading.

Under the weather today, so a quick comment and then whatshould be good support and resistance areas on Thursday. Wewill get the Leading Indicators at 10 am and the Philly Fedat noon. The late action on Wednesday looks telling shortterm. If there is another rally up to the highs and itfizzles, begin scaling into a swing trade on the short side.If there is early weakness, it will likely be a buyingopportunity. At this juncture, don't hold that position toolong. Right now it looks like a move to that 1492-1494 areais the most we'll see before a sizeable setback occurs.

There is resistance at the 1484.50-1485.00 area on the SPfutures and the 1852.50-1853.50 area on the Nasdaq futures.Above those, look for minor resistance at 1486.50 on the SPfutures and 1857.50 on the Nasdaq futures. If those areexceeded, the big resistance is at the 1492.00-1494.00 areaon the SP futures and/or the 1864.00-1867.00 area on theNasdaq futures.

Initial support at the 1477.50-1477.00 area on the SPfutures and the 1844.00-1842.50 area on the Nasdaq futures.If those break, then it looks like the 1473.50-1473.00 areaon the SP futures and the 1836.50-1835.75 area on the Nasdaqfutures are next. If those break, then the 1470.25-1469.75area on the SP futures and the 1832.50-1830.50 area on theNasdaq futures would be next.

Good Trading,
Mike Reed