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TradeStalker's
R.B.I. Trader's Update
4/24/2007
(Published Since 1996)
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Dateline: 6:24 pm eastern time, 4/24/2007
After a flat open on Tuesday, the market popped up and then reversed from just under the 1490.50-1490.75 resistance zone on the SP futures (along with resistance on the Nasdaq and Russell futures). The market nudged lower until the 10 am releases and when the numbers were released, the SP futures dropped quickly to the 1482.50 level. There was a "slinky"pattern that developed at the 1485 level and the market rolled back over to make new lows. After just an hour of trading, the SP found bottom at 1480.25 and then turned up. The SP rallied to 1489.50 and then pulled back 5 points to the 1484.50 level. The market turned back up and went to token higher highs by 2 pm, but the rally couldn't stick and there was another 5 point pullback before firming at the close.
The "talk" seems to be that Dow 13,000 is a given. Afterall, it's just a stone's throw away from here. I remember when the party hats were on when the Dow was about to close above 3000 for the first time ever. For 2 days the Dow closed at 2999 and the party had to be put on hold. Then, after all of the hullabaloo, the market began a bearish cycle and had a pretty deep correction.
In any case, the market sure has a pretty strong lid overhead. This stalling out at new highs normally precedes a decent drop. The 1494.75 high on the SP futures could very well be a short term top and if things work out, it would leave the door open for a trip back towards the 1463-1461 zone on the SP futures.
Okay, back to the very short term. On Wednesday we get NewHome Sales at 10 am and then the Fed's Beige Book at 2 pm. The Housing numbers have been market movers lately and of course the market nearly always reacts to Fed notes. The SP and Dow have established trading ranges. Until they are broken, look for a shorting opportunity on a move towards resistance that stalls and/or reverses. And also look for a buying opportunity on a sell off to support that stalls and/or reverses.
Good Trading,
Mike Reed
Sign up for our FREE TRIAL, and you'll get my nightly marketcomment as well as consistently accurate support andresistance levels for the emini SP, Nasdaq, and Russell.http://www.TradeStalker.com
Tuesday, April 24, 2007
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