TradeStalker's RBI Update 07/29/09

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TradeStalker's

R.B.I. Trader's Update

7 / 29 / 2009

(Published Since 1996)

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Dateline: 6:25 pm eastern time, 7/29/2009


A lower open was reversed from just over the Tuesday low on
the ES on Wednesday, then bounced back. The ES rallied from
966.50 to 975.00, then the move was reversed. A choppy
downdraft lasted into the last hour. The ES tested the early
afternoon low at 965.25 and reversed around 3pm, and the
futures were able to rally back to make token higher highs
right before settlement.

The internal gauges have pretty much worn off the overbought
status over the past 2 days of back and forth action. In
fact, the Vix surprisingly gave 1 buy signal on Wednesday.
The pattern over the last several days has been early
weakness followed by late strength. It looks like we could
get the opposite of that on Wednesday, starting the day with
some early strength and then seeing if the move can stick.
At the moment, it looks like the market holds together
unless the double bottom from the 965.75-965.25 area on the
ES is not held.

On Thursday we get the Initial Claims data before the open.
If the market opens higher, the initial resistance area will
not be exceeded if the market is weak. If that resistance is
overcome, then the 979.50-980.25 should be key in the early
going. If there is another reversal from there, then the
market is still in a trading range and a pullback could be
fairly sharp. However, if the ES has no problem at the 980
area, then we should see the 984.00-984.50 area. If that
area is reversed and the ES sells off through 980 again, it
would need to quickly turn back up to avoid a drop back
towards the 975.00 level or lower.


September 2009 SP futures resistance
symbols: emini = esu9 / big contract =spu9

977.00
979.50-980.25
984.00-984.50
989.75-990.50

September 2009 SP futures support
symbols: emini = esu9 / big contract =spu9

971.00
965.75-965.25
963.00-962.50

September 2009 Nasdaq futures resistance
symbols: emini = nqu9 / big contract = ndu9

1605.00
1608.00-1608.75
1611.75-1612.50
1618.75-1619.25

September 2009 Nasdaq futures support
symbols: emini = nqu9 / big contract = ndu9

1595.25
1589.50-1588.75
1574.75-1573.75

September 2009 Dow futures resistance
symbols: emini = ymu9

9060
9080-9082
9102-9107
9157-9162

September 2009 Dow futures support
symbols: emini = ymu9

9016
8973-8969
8937-8933

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Good Trading,
Mike Reed

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