Market Comment 05/02/07 - Nightly Update

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TradeStalker's

R.B.I. Trader's Update

05 /02 / 2007

(Published Since 1996)

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Dateline: 8:06 pm Eastern time, 5/02/2007

The market opened higher on Wednesday and didn't stop until
reaching the 1498.50-1499.50 resistance area. The market
backed off just 1.50 points on the SP futures, and not
wanting to roll over, the market pushed its way back up to
the 1503.50-1504.50 resistance area, and paused again. And
again, the pullback was small and the market went back to
test the highs. That resistance was rejected again, but the
dip didn't stick so they tried a third time. After touching
1504.75 on the SP futures, the move finally fizzled with 90
minutes left. There was another little 123 top pattern that
started at 2:45pm, and the day finished with the first 4+
point pullback since the Tuesday afternoon low.

The 1504.50-1504.75 area on the SP futures has been a lid
overhead for quite awhile now. Treat that as the top of a
wide range. If there is finally a push through that zone, it
should spark more short covering. If it's going to be a
clean breakout, then that area would be exceeded and then
hold on the first pullback. Unless / until that occurs, the
market is vulnerable again.

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