TradeStalker's
R.B.I. Trader's Update
8 / 24 / 2009
(Published Since 1996)
...............................................
Dateline: 6:28 pm eastern time, 8/24/2009
The market opened strong on Monday, and a choppy trend up
move lasted for about an hour and a half before it ran out
of gas. The ES stalled and turned down from 1035.00, and
then after 1031.75 was broken, a top was in place. The ES
fell to 1023.25 before finally bouncing. That bounce fizzled
at the 1027.50 updated resistance, and then the market fell
again. The ES dropped to 1021.25, a tick over the 1021.00-
1020.50 support, and bounced back. The bounce
fizzled/reversed off of 1026.00, and then went back to test
the low. The ES turned up from 1021.75, and then snapped
right back to 1026.25 before the close.
The market started the day on a good note on Monday, but the
move wouldn't stick and the ES dropped from new recovery
high ground back to what appears to be important support at
the 1021.25-1020.50 area. The way the intraday charts look,
a break of that 1021.25-1020.50 area that is not quickly
reversed would make a little head and shoulder pattern. If
that happens, it would point the ES toward the 1007.75-
1007.00 area. In order to nullify that pattern, and spark a
rally, the initial resistance areas would need to be
exceeded, and then hold on a pullback. If that occurs and
the market goes back to test the Monday highs, it should set
up a good shorting opportunity.
We will see how things play out by the numbers on Tuesday.
On Tuesday we get the Consumer Confidence 30 minutes into
the trading day. With the short term overbought extremes and
a couple of Vix sell signals, the market is vulnerable
unless the initial resistance is broken and held. Should the
ES get back to test the Monday highs, and the move runs out
of gas and stalls out like on Monday, a repeat of the Monday
action is likely.
September 2009 SP futures resistance
symbols: emini = esu9 / big contract =spu9
1026.50-1027.50
1032.00-1032.50
1035.00
1038.00-1038.50
September 2009 SP futures support
symbols: emini = esu9 / big contract =spu9
1021.25-1020.50
1017.50
1014.75-1014.00
1007.75-1007.00 **strong
September 2009 Nasdaq futures resistance
symbols: emini = nqu9 / big contract = ndu9
1639.00-1639.75
1642.75-1643.00
1648.25
1652.00-1653.50
September 2009 Nasdaq futures support
symbols: emini = nqu9 / big contract = ndu9
1627.75-1627.25
1624.00
1620.50-1620.00
1610.50-1608.75 **strong
September 2009 Dow futures resistance
symbols: emini = ymu9
9514-9519
9552-9555
9576
9591-9596
September 2009 Dow futures support
symbols: emini = ymu9
9474-9470
9442
9408-9404
9350-9346 **strong
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http://www.tradestalker.com/members
---------------------------
Good Trading,
Mike Reed
Copyright (c) 2009 by TradeStalker.com, Ft Wayne, IN.
TradeStalker Updates may not be redistributed without
permission.
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PO Box 9783, Ft Wayne, IN, 46899
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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