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Indicators Say Buy But Mult-Year Highs Say Not Now

Thursday, 04. May 2006
This is a challenging market with strong resistance right above us on the S&P 500 futures market. Indicators are in buy so technically you want to be long, but there really isn't a setup that allows entry. The S&P futures has held up well since 4/19 with orderly price movement all giving way for the bulls but, it promises to not be easy. Any trade should expect to get larger retracements than you might usually expect. In other words, your perfect trade can be stopped out for a loss all to frequently. It may be necessary to reduce your size so you can more easily roll with what the market gives us. As of this entry the market is at 1317 with support levels at 1307, but you should be prepared to handle a test of 1300, otherwise stay flat. The recommendation is to stay flat until we get some range expansion then a hold of support.

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