* JIM'S MARKET THOUGHT OF THE DAY *

Trading the rest of this week will be extra important for many markets, including the U.S. stock indexes. While the solid rebound in the U.S. stock indexes overnight is a good early sign for the stock index bulls, they are not out of the woods just yet. It would not surprise me to see some strong downside price pressure in stock indexes today, once the U.S. stock markets are open. Key will be this: Will traders view the overnight corrective bounce in the stock indexes as just a higher level at which to bail out of long positions? Or, will bargain hunters come back into stocks in a strong fashion and push stock index prices sharply higher? Traders will know more about the health of the U.S. stock market at the end of this week. Remember, too, that today is the last trading day of the month, which will only add to market volatility today.

U.S. STOCK INDEXES

The stock indexes are solidly higher in early morning electronic trading, on a corrective bounce. But prices are off their overnight highs. Trading the rest of this week will be critical for stock indexes.

March S&P 500: The shorter-term moving averages (4-, 9- and 18-day) are bearish today. The 4-day moving average is below the 9-day and 18-day. The 9-day is below the 18-day moving average. Short-term oscillators (RSI, slow stochastics) are neutral to bearish early today. Today, shorter-term technical support comes in at 1,400.00. Sell stops likely reside just under that level. More sell stops likely reside under shorter-term technical support at Tuesday's low of 1,389.00. Upside resistance for active traders today is located at the overnight high of 1,412.40 and then at 1,420.00. Buy stops are likely located just above those levels. Wyckoff's Intra-day Market Rating: 5.0

PIVOT POINT LEVELS FOR MARCH S&P 500:

Pivot:------------ 1,412.35
1st Support:------ 1,372.00
2nd Support:------ 1,348.65
1st Resistance:--- 1,435.79
2nd Resistance:--- 1,476.05

June Russell 2000: The shorter-term moving averages (4- 9-and 18-day) are turning bearish today. The 4-day moving average is below the 9-day and 18-day. The 9-day average is above the 18-day, but is turning down. Short-term oscillators (RSI, slow stochastics) are bearish early today. Shorter-term technical support is located at Tuesday's low of 794.20. Sell stops likely reside just below that level, and then more sell stops are likely located just below technical support at 790.00. On the upside, short-term resistance is seen at 800.00. Buy stops are likely located just above that level. More buy stops are likely located just above resistance at 810.00. Wyckoff's Intra-Day Market Rating: 5.0

PIVOT POINT LEVELS FOR JUNE RUSSELL 2000:

Pivot:------------ 802.80
1st Support:------ 785.60
2nd Support:------ 777.00
1st Resistance:--- 811.40
2nd Resistance:--- 828.60

June Dow: For today, sell stops likely reside just below support at Tuesday's low of 12,210 and then more stops just below support at 12,150. Buy stops likely reside just above shorter-term technical resistance at 12,400 and then at 12,450. Shorter-term moving averages are bearish early today, as the 4-day moving average is below the 9-day and 18-day. The 9-day moving average is below the 18-day moving average. Shorter-term oscillators (RSI, slow stochastics) are bearish early today. Wyckoff's Intra-Day Market Rating: 5.0

PIVOT POINT LEVELS FOR JUNE DOW:

Pivot:------------ 12,393
1st Support:------ 12,097
2nd Support:------ 11,913
1st Resistance:--- 12,577
2nd Resistance:--- 12,873

U.S. TREASURY BONDS AND NOTES

U.S. T-Bonds and T-Notes are lower early today, on a corrective pullback after big gains on Tuesday. Treasuries will likely trade in an inverse relationship with the U.S. stock indexes for the rest of this week. But Treasury bulls still have some upside near-term technical momentum.

June U.S. T-Bonds: Shorter-term moving averages (4- 9- 18-day) are bullish today. The 4-day moving average is above the 9-day. The 9-day is above the 18-day moving average. Oscillators (RSI, slow stochastics) are bearish early today. Shorter-term technical resistance lies at the overnight high of 113 14/32. Buy stops likely reside just above that level. More buy stops likely reside just above technical resistance at Tuesday's high of 114 2/32. Shorter-term technical support lies at 112 24/32. Sell stops likely reside just below that level. More sell stops are likely located below support at 112 16/32. Wyckoff's Intra-Day Market Rating: 6.0

PIVOT POINT LEVELS FOR JUNE T-BONDS:

Pivot:----------- 113 6/32
1st Support:----- 112 10/32
2nd Support:----- 111 8/32
1st Resistance:-- 114 8/32
2nd Resistance:-- 115 4/32

June U.S. T-Notes: Shorter-term oscillators (RSI, slow stochastics) are bearish early today. Buy stops likely reside just above shorter-term technical resistance at the overnight high of 108.28.5, and more buy stops are likely located just above resistance at 109.00.0. Shorter-term moving averages are bullish early today. The 4-day moving average is above the 9-day. The 9-day is above the 18-day moving average. Sell stop orders are likely located just below support at 108.16.0, and then more sell stops just below support at 108.08.0. Wyckoff's Intra Day Market Rating: 6.0

PIVOT POINT LEVELS FOR JUNE T-NOTES:

Pivot:------------ 108.23.0
1st Support:------ 108.04.0
2nd Support:------ 107.13.0
1st Resistance:--- 109.14.0
2nd Resistance:--- 110.01.0