TradeStalker's RBI Update 01/07/10

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TradeStalker's

R.B.I. Trader's Update

1 / 7 / 2010

(Published Since 1996)

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Dateline: 6:10 pm eastern time, 1/7/2010

The early weakness on Thursday took the ES to the 1128
support and it quickly reversed, setting up a trade for a
bounce. The ES ran up to the 1135.00 resistance and then
pulled back. Then the ES broke 1131 and held that level on a
dip, keeping upside intact. After running to 1138.50, the ES
dropped right to the 1134.50 updated support where buying
came in and gave the market a run back to test the highs by
the close.

The Dow and SP500 both made new intraday and closing highs
for this bull market move. The Nasdaq averages did not. The
internal gauges mostly backed out of extreme overbought
territory on Thursday. The sentiment is still extremely
bullish, and the crowd being so bullish at new highs is kind
of scary. The exit door could get crowed if a dose of bad
news hits at this juncture. If not, a pop to the 1141-1143
area on the ES is still a possibility before there is a
sharp, or prolonged, downdraft.

We get the Employment numbers on Friday. Look to sell early
strength, and then if the market obliges and sells off, the
1134.75-1134.25 area on the ES then would need to hold on
the first good pullback to keep a good uptrend intact. If
that area on the ES, along with the 1870.25-1869.50 area on
the NQ, can not hold then the market could be rolling over.
If that is the case, then the key support to end the week is
at 1126.00-1125.00 zone.


March 2010 SP futures resistance
symbols: emini = esh0 / big contract =sph0

1138.50-1139.00
1141.00-1143.00
1146.50-1148.00
1151.75-1152.25

March 2010 SP futures support
symbols: emini = esh0 / big contract =sph0

1134.75-1134.25
1131.75-1131.25
1126.00-1125.00

March 2010 Nasdaq futures resistance
symbols: emini = nqh0 / big contract = ndh0

1879.50-1880.50
1883.50-1885.25
1889.75-1890.50
1896.50-1897.50

March 2010 Nasdaq futures support
symbols: emini = nqh0 / big contract = ndh0

1870.25-1869.50
1866.25-1865.75
1858.50-1857.50

March 2010 Dow futures resistance
symbols: emini = ymh0

10558-10563
10582-10586
10618-10621
10674-10678

March 2010 Dow futures support
symbols: emini = ymh0

10523-10520
10495-10491
10441-10438

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Good Trading,
Mike Reed
TradeStalker.com

Copyright (c) 2010 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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(DIA), and (DOG)


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