TradeStalker's
R.B.I. Trader's Update
8 / 12 / 2009
(Published Since 1996)
...............................................
Dateline: 6:22 pm eastern time, 8/12/2009
The ES opened lower on Wednesday and then turned up from
just over the 990.25-990.00 initial support. That set up an
early trade on the long side, and it was a stronger move
than anticipated. Then the ES trended higher into the Fed
release, and after stalling and reversing from 1 tick under
the 1008.00-1008.50 zone (1007.75 high) the ES dropped to
1000.50 before reversing. The next move was about straight
up, going right through the 1007.75 high on the way to the
1011.75-1012.50 resistance area. The ES made it to 1011.25
and the fell to 1008.00, then a bounce to 1011.25 reversed
and the market sold off pretty fast into the close.
The ES continues to be range bound between 1016 on top and
990 on the bottom side. The trip to the upper end of the
range at the 1011.25 level was sold aggressively. However,
there must be a lot of shorts trapped below as the selling
has been absorbed and reversed sharply on a number of
occasions lately. A turn lower from up here would make a 123
type top on the daily chart. the market would then be
vulnerable and there could be a 5-7% drop from up here.
On Thursday the market will be "ok" as long as the ES and
the other futures contracts stay over their initial support
areas. It will be a surprise if the market can pull that
off. on the other side of the coin, with moves not able to
hold, look for shorting opportunities as soon as an upside
run fizzles out. The better reward/risk trade should be on
the short side under the Wednesday highs. If the market gets
hit with a selloff from up here, and finishes the week down
near 990 on the ES, it could be the beginning of a bigger
drop towards the 958-954 area at a minimum.
September 2009 SP futures resistance
symbols: emini = esu9 / big contract =spu9
1011.75-1012.50
1015.50-1016.00
1020.00-1020.50
September 2009 SP futures support
symbols: emini = esu9 / big contract =spu9
1001.00-1000.50
995.50-995.00
990.25-990.00
September 2009 Nasdaq futures resistance
symbols: emini = nqu9 / big contract = ndu9
1627.00-1627.75
1633.00-1633.75
1637.00-1637.75
1641.75-1642.50
September 2009 Nasdaq futures support
symbols: emini = nqu9 / big contract = ndu9
1613.75-1613.25
1607.50-1607.00
1593.75-1592.75
September 2009 Dow futures resistance
symbols: emini = ymu9
9369-9372
9400-9404
9435-9439
9494-9499
September 2009 Dow futures support
symbols: emini = ymu9
9306-9300
9286-9282
9216-9212
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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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This publication's primary focus is trading the index
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