Market Comment 04/30/07 - Nightly Update

.................................................

TradeStalker's

R.B.I. Trader's Update

04 /30 / 2007

(Published Since 1996)

...............................................



Dateline: 7:14 pm Eastern time, 4/30/2007


The selloff on Monday wasn't a surprise. The market opened
slightly higher, and that was immediately sold. Off of the
1502.50 level on the SP futures, the market dropped through
the initial support at the 1498.50-1498.00 area, but then
quickly reversed. After a little bounce, they pulled back
again to 1498.00 and turned up. That made a 123 reversal
pattern and they snapped back to make a token higher high on
the SP and Dow by early afternoon.

The move stalled just under the 1503.75-1504.50 resistance
zone, and then just after 2pm the selling began to pick up
pace. It was a pretty steady selloff for a change. The SP
futures tried to bounce off of the 1494.50 level, but that
was sold and the a nose-dive continued until reaching the
1488.00 level on the SP futures near the close.

This looks like more than just another dip in the resilient
uptrend. If the highs made on Friday / Monday turn out to be
a short term top, we could be on the way towards the
1473.50-1471.50 area on the SP futures (or more) before this
selloff has a chance to turn around. That would be the first
key area for the market to hold.

On Tuesday we get the ISM Index and Pending Home Sales at
10am. If there is follow through selling, be on alert for a
reversal in the first 20-40 minutes of trading. If that
occurs, be careful overstaying your welcome on the long
side. Right now it looks like the initial resistance areas
will need to be exceeded, and held, in order to arrest the
current downside momentum. If the market doesn't have the
oomph to do that, then the short term trends remain down and
selling the bounces should offer the better opportunities on
Tuesday.

Good Trading,
Mike Reed

Sign up for our FREE TRIAL, and you'll get my nightly market
comment as well as consistently accurate support and
resistance levels for the emini SP, Nasdaq, and Russell.
http://www.TradeStalker.com