Pre Market April 20, 2010

The bullishness we saw on the close yesterday carried through overnight. This kind of move can really piss off the bears. They have been waiting for a big corrective sell-off or even a continuation of the bear market (think Bob Prechter et al). I think they may get it but first the weak shorts have to be punished. They have to be taught that there is no such downward action that they will be a part of. As soon as that lesson is taught then down we go. Its like I mentioned yesterday, the market typically goes exactly the way you predicted AFTER you have been stopped out.

I don’t know if last nights 7.5 handle rally was enough to flush them out but we are sure to see an interesting open with lots of volume. You will also note that the break North of that 1190 area would lead to a target of 1197.50- 1204 as mentioned earlier. Again I don’t know if the overnight session has satisfied the rotation back to that area. We may need to see a RTH test of that area first.

We will open enough above yesterdays settlement of 1195.5 and yesterdays Value area high of 1193.25 to expect a trade toward those areas. If we cant get below the OR a few minutes off the open then we are probably still in a bullish mode and the gap fill players might have a lousy day.

I have resistance at 1205.75 and 1209.75 and support at 1195.5- 1193.25. These levels become invalid after the IB (first hour of RTH trading) is complete. As mentioned, I do expect a healthy open with high Paper volume. Cant wait…


Tim Mack

PS no reports today - some Fed speak but no one listens anymore.