TradeStalker's
R.B.I. Trader's Update
8 / 27 / 2009
(Published Since 1996)
...............................................
Dateline: 6:32 pm eastern time, 8/27/2009
Last night I wrote:
"A washout should be around the corner, and then a
rally might be able to reassert itself." And
later, "...a trip towards the 1014.75-1014.00 zone
could be in the cards before buyers step to the
plate".
The ES opened flat at 1026.75, then went straight down to
1014.75 in the first 40 minutes of trading. Then a little
double bottom was made and the buyers stepped to the plate
and took the ES all the way to 1032.75 by 2:40 pm. Then, as
the ES was at 1032.00, just a few ticks from the high, I
Instant Messaged the group:
"(Aug 27-14:47) Mike: this is getting parabolic,
careful w/new long up here."
That 1032 level wasn't seen again as a drop to 1028.50
followed before the close.
The market made an impressive comeback after the early
shellacking it took on Thursday. We are in the timeframe
that tends to be bullish, normally for a mark-up into the
end of the month. Nearly all of my indicators are neutral,
although the sentiment is a bit overly bullish. The market
has made good moves in both directions this week, and it is
back to the top side of this trading range. The dips should
offer good buying opportunities and the rallies should set
up shorting opportunities when the upside move runs for
awhile then stalls. A pullback of 4-6 points on the ES
should hold if the market is going to be strong. If they
fall more than that, then the 1020.75-1020.25 zone on the ES
could be seen again. It must hold, otherwise there is
something not right and a top formation could be in the
works.
On Friday look for early strength to be sold as soon as the
upside stalls, especially if that occurs in the first 20-40
minutes of trading and the ES runs up to test the 1038 area.
If that plays out, beware that the first good drop should
set up a trade on the long side as long as that 1020.75-
1020.25 zone holds.
September 2009 SP futures resistance
symbols: emini = esu9 / big contract =spu9
1030.50
1032.00-1032.75
1035.00-1035.50
1038.00-1038.50 **key
1043.00-1043.50
September 2009 SP futures support
symbols: emini = esu9 / big contract =spu9
1028.50
1024.50-1024.00 **key
1020.75-1020.25
1017.50-1017.00
1014.75-1014.00 **major
September 2009 Nasdaq futures resistance
symbols: emini = nqu9 / big contract = ndu9
1640.25
1642.75-1643.50
1649.00-1649.75
1655.00-1655.50 **key
1661.00-1662.00
September 2009 Nasdaq futures support
symbols: emini = nqu9 / big contract = ndu9
1635.50
1627.25-1626.50 **key
1622.25-1621.50
1618.50-1617.75
1611.50-1610.50 **major
September 2009 Dow futures resistance
symbols: emini = ymu9
9575
9596-9599
9619-9622
9650-9653 **key
9689-9693
September 2009 Dow futures support
symbols: emini = ymu9
9555
9542-9537 **key
9517-9513
9479-9475
9448-9443 **major
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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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