Top Takes From RealMoney

4. Morning Trade

By Bob Byrne
9:26 a.m. EDT

The bulls find themselves in a bit of a jam this morning, and if they are not able to build some momentum back above 907.50 they run the risk of being pushed back to the bottom of our range near 880. The bears need to focus on one thing today... closing this market under 907.50 by as much as possible.

Watch for early morning buyers anticipating a gap fill, but be aware that all trading under 907.50 favors the bears and a break of 904.50 adds further downside momentum.

The S&P E-mini is currently waffling around the 907.50 area, which happens to be strong support/resistance. A sustained trade under this area puts the bulls back on their heels and in danger of a further beating. The bulls need to man-up, push this market back above 907.50 and target moderate resistance at 909.50 and 913. All trading between 913 and moderate resistance at 917.50 will have a more neutral flavor as neither side will have much of an edge.

Unless the bulls come rushing in at the open the bears can continue to push this market lower with moderate support at 904.50 being their first target. It's going to get a bit tricky as we approach the 900 area -- We have several moderate/strong and strong levels relatively close together. Moderate/strong support comes in at 901, strong support at 896 and then another level of moderate/strong support at 891.50. This 10-point range will be better suited for quick scalping than anything else.

No positions.