TradeStalker's
R.B.I. Trader's Update
7 / 8 / 2009
(Published Since 1996)
...............................................
Dateline: 7:16 pm eastern time, 7/8/2009
We got our 2 sided action on Wednesday. The ES bounced in
the early going but the move fizzled/reversed after barely
poking over the 882.75-883.00 initial resistance zone, as
did the NQ and YM. With initial resistance areas rejected
across the board, it set up a very good shorting
opportunity. The drop took the ES to 866.25, just over the
865.00-864.50 support zone, and then reversed. That bounce
failed at 874.00, coinciding with the 60ema on the 5 minute
chart, and then fell to 865.25, just 1 tick over support and
then reversed again. The ES rallied to 879.00 before backing
off into the close. So, we got our 2 sided action, and had
the high and low were both within .50 of a
resistance/support zone.
The market held together on Wednesday, as there was a pretty
good bid on the ES at the 866-865 area on two drops. In
addition, the market is a bit more oversold despite chopping
around on Wednesday. The Vix gave 2 of 5 possible buy
signals as it jumped and then closed the day near its low.
Along with the oversold internal gauges and a shift in
market sentiment, the price patterns were short term bullish
on Wednesday. The 865.00-864.50 support zone held, staving
off a trip towards the 852-846 area for now.
The market has some things going for it, but don't count on
a trend-up day on Thursday. Buying pullbacks that
stall/reverse from above the Wednesday lows should be the
better odds trade until the market puts together a decent
45-60 minute bounce and it fizzles. There should be several
tradable moves both ways. Look for early strength to set up
a shorting opportunity early on Thursday. If that plays out,
then a pullback that can hold around the 872.25-871.50 area
on the ES and turn up should set up a trade on the long side
in the first hour or so.
September 2009 SP futures resistance
symbols: emini = esu9 / big contract =spu9
879.00
882.75-883.50
888.25-889.00
892.50-893.00
September 2009 SP futures support
symbols: emini = esu9 / big contract =spu9
872.25-871.50
865.00-864.50
858.50-858.00
852-846 {band on SP500 Cash}
September 2009 Nasdaq futures resistance
symbols: emini = nqu9 / big contract = ndu9
1414.50
1416.00-1416.75
1419.75-1420.50
1424.25-1425.00
September 2009 Nasdaq futures support
symbols: emini = nqu9 / big contract = ndu9
1402.50-1401.50
1395.50-1394.50
1386.75-1386.00
September 2009 Dow futures resistance
symbols: emini = ymu9
8155
8166-8170
8221-8226
8255-8259
September 2009 Dow futures support
symbols: emini = ymu9
8104-8100
8039-8035
7981-7977
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Good Trading,
Mike Reed
Copyright (c) 2009 by TradeStalker.com, Ft Wayne, IN.
TradeStalker Updates may not be redistributed without
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PO Box 9783, Ft Wayne, IN, 46899
This publication's primary focus is trading the index
futures. However, you can also use my nightly updates to
trade the following ETF's (SPY), (QQQQ), (SDS), (QID),
(DIA), and (DOG)
Disclaimer
The financial markets are risky. Investing is risky.
Past performance does not guarantee future performance.
The foregoing has been prepared solely for informational
purposes and is not a solicitation, or an offer to buy
or sell any security. Opinions are based on historical
research and data believed reliable, but there is no
guarantee that future results will be profitable.
We are not advocating trading futures. The prices and
contracts in the TradeStalker Updates specify a manner
in which you could trade. We occasionally mention the
SP500 and Nasdaq futures markets because it is
extremely liquid and tends to lead the other markets.
This is not an endorsement or recommendation of the SP500
and Nasdaq futures markets. The risk of loss in futures
is substantial. You can lose more than your original
investment. We are not Registered Investment Advisors or
Commodity Trading Advisors.
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