Market Comment 05/03/07 - Nightly Update

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TradeStalker's

R.B.I. Trader's Update

05 /03 / 2007

(Published Since 1996)

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Dateline: 8:05 pm Eastern time, 5/03/2007

The market opened higher and finally cut through the
overhead resistance on Thursday. The move stalled after
rallying to the 1508.00-1508.50 zone on the SP futures, and
then pulled back to the 1504.25 level in early afternoon.
Buyers stepped to the plate and started a ragged move back
to a token higher high occurred around 3pm. A small pullback
followed, but the market held its uptrend and firmed into
the close.

The Dow, SP500 and Nasdaq 100 all made new cycle highs on
Thursday. The Russell 2000 has yet to confirm, and it sank
fast at the close. The market doesn't seem comfortable
sitting up here at new highs just yet. The pops were quickly
rejected on Thursday. The good thing is that the "breakout"
area held on a pullback. However, the "breakout" could be a
fake-out if the 1504.00 level is broken, and the market
doesn't quickly snap right back. Along with that, the 13200
level looks like a key support level. The market should be
ok as long as a pullback holds at/ just over those levels,
but things could change if they break.

We get the Jobs numbers on Friday morning. If there is a gap
in either direction, be on lookout for a reversal in the
first hour. After that, look for potential setups around the
support and resistance areas.

Good Trading,
Mike Reed

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