TradeStalker's RBI Update 08/26/09

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TradeStalker's

R.B.I. Trader's Update

8 / 26 / 2009

(Published Since 1996)

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Dateline: 6:15 pm eastern time, 8/26/2009

The ES went down to the 1021.25-1020.50 support on Wednesday
morning, and from a 1020.25 low the ES reversed 25 minutes
into trading. That set up a trade on the long side, and the
ES sprinted 1032.00 and stalled out. I stated that the
1032.00 level would NOT be exceeded if the market was
heading back down, and the ES sold off 9 points to the
updated 1024.50-1024.00 updated support. A bounce off of
that level was feeble, and the ES reversed from 1027.25 and
dropped 5 points to 1022.25. A bounce turned into a double
top at 1028.75, but the updated support at 1025.50-1024.50
area was defended (though 1024.25 was touched twice) and the
ES bounced back 4 points before the close.

We get Initial Claims and GDP before the open on Thursday.
The market has been spinning its wheels for a few days, and
the bullish sentiment is at a short term extreme. With the
market struggling to hold its gains lately, and the upside
losing momentum, it might not be the best buying opportunity
up here. A washout should be around the corner, and then a
rally might be able to reassert itself.

On Thursday, as long as the initial support areas are held,
no damage done. Just remember that the bounces are not
sticking, and that a rally back towards the highs would be
sold as soon as the move stalls out. If the market breaks
lower, and the Wednesday lows at key short term support are
broken, then a trip towards the 1014.75-1014.00 zone could
be in the cards before buyers step to the plate.


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

1028.25-1028.75
1032.00-1032.50
1035.00-1035.50
1038.00-1038.50

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

1024.75-1024.25
1020.75-1020.25
1017.50-1017.00
1014.75-1014.00
1007.75-1007.00 *** STRONG***

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

1640.00-1640.75
1644.00-1644.50
1649.00-1649.75
1655.00-1655.50

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

1633.76-1633.00
1627.75-1627.25
1624.00-1623.50
1617.50-1617.00
1610.50-1608.75 *** STRONG****

September 2009 Dow futures resistance
symbols: emini = ymu9

9548-9552
9572-9574
9599-9602
9619-9622

September 2009 Dow futures support
symbols: emini = ymu9

9512-9509
9475-9472
9446-9442
9408-9404
9350-9346 *** STRONG****

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Good Trading,
Mike Reed

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