Hammerstone Daily Massive

SEP'07 S&P500 ** POSITIVE SIGNAL NEEDS CONFIRMATION ** - The SEP'07 SP500 bounced off support and is flirting with a positive turn. Key off the 1519.50 Directional today for an indication of the session tone. A held trade above here is needed to give yesterday's signal its due, pressing 1528 and 1536.50 on any positive follow through. Be patient. Although a test of this resistance is positive, a reaction should be expected. Roll with a held breach of 1536.50, as new highs will be on the menu up to 1567.75 and 1574.25 on any trend move north.

- A held trade under 1519.50 has the index in a messy digest down to 1511- 1509.50. Stay nimble. This is the base supporting the higher hope. If the market is ready to make a run, it will find its footing here. A held failure puts yesterday's signal in question down to 1502.25 on any negative turn. Be patient. A messy trade is expected. A break under 1502.25 and the contract revisits the 1492.75-1491.50 support, if not 1480.50-1478.75. Advisory warning is in effect. This is an edge of the envelope. It's hold or fold. Jump on a reversal signal but don't fight a held trade under this support, as the underlying sentiment will turn sour with 1442.25 the lower target. 1418 is the current extreme.

Hammerstone Daily Massive