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TradeStalker's
R.B.I. Trader's Update
4/25/2007
(Published Since 1996)
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Dateline: 6:25 pm eastern time, 4/25/2007
The market gapped up on the open on Wednesday, and reversed from a 1496.50 high on the SP futures. That was just shy ofthe 1497.00-1497.50 resistance area, and there was a steady selloff until reaching the Tuesday closes just 45 minutes into trading. That first pullback was bought, and off of a 1488.00 low the SP futures went into rally mode. Just before 1:30pm the SP made it back to the 1496.75 level. Per theIntraday Update, the market backed off, but then broke out over that resistance just before the Beige Book release.After that release, the trend up move gathered some steam and the market rallied steadily until the final 20 minutesof trading.
After turning up on Wednesday, the SP and Nasdaq futures held dynamic intraday support all of the way up. The move lost some steam in the final minutes of trading, and ended the day right above that support. If the initial support areas can not hold, there could be another fairly quick selloff on Thursday morning.
The RBI Sell gate is open at Wednesday's close. This should make further upside somewhat difficult, at least. On Thursday morning, look to get short on early strength. If the market obliges, and there is a selloff from early strength that cuts through the initial support, look for a potential reversal back up if the downside reaches, and stalls, around the 1497.50-1497.00 area on the SP futures.That should hold on a pullback, otherwise we could have more than just another dip in a strong uptrend.
Good Trading,
Mike Reed
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Wednesday, April 25, 2007
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