TradeStalker's
R.B.I. Trader's Update
1 / 18 / 2010
(Published Since 1996)
...............................................
Dateline: 5:26 pm eastern time, 1/18/2010
We came into Friday looking for the 1144.00-1143.50 zone to
be key. The ES opened below that zone, bounced up to
1144.00, then reversed and dropped sharply. We locked in
some profits at the 1133.00-1132.50 zone, which gave a small
bounce, but the market continued to move in trend-down mode
to the 1127.75 recent low. A bounce from 1127.50 reversed at
the 1130.75 updated resistance, and the ES pulled back a bit
to 1128.50. However, that dip was reversed and the market
rallied back in the last hour of trading.
The daily charts are beginning to look toppy, and the weekly
chart doesn't look too good either. Now the key support
could be in jeopardy. In last Wednesday night's update I
stated:
"This could turn into a trading range, with a
double top at 1145.25-1146.25 possibly in place.
On the lower side, that 1129.00-1128.50 area
should be a key support zone now."
The ES went a tiny bit over that zone to 1147.00 on Thursday
(testing the 1148.00 globex high) and a point below it to
1127.50 on Friday. The ES then snapped back to close off
that low area. Now the 1128.25-1127.50 area must be
defended, otherwise a bigger picture breakdown could be
underway and we could see the 1119.50-1118.50 area reached
on this leg down.
On Tuesday look for early strength to be sold as soon as the
momentum fizzles, especially if there is a pop that reverses
in the first 20 minutes or so. If that plays out, then a
pullback should hold over the 1131.50-1131.00 area to keep
the stair-step higher pattern on the intraday chart. If that
area is broken, the key support should be tested. If that is
broken, then 1125.00 needs to be reversed right away, or
else a drop towards the 1123.00-1122.50 area (or more) could
be in the cards before a snap-back rally can occur.
March 2010 SP futures resistance
symbols: emini = esh0 / big contract =sph0
1133.00-1133.50
1137.50-1138.25
1143.50-1144.00
1147.00-1148.00
March 2010 SP futures support
symbols: emini = esh0 / big contract =sph0
1131.50-1131.00
1128.25-1127.50
1125.50
1123.00-1122.50
1119.50-1118.50
March 2010 Nasdaq futures resistance
symbols: emini = nqh0 / big contract = ndh0
1866.00-1867.00
1872.50-1873.50
1879.50-1881.00
1888.50-1889.50
March 2010 Nasdaq futures support
symbols: emini = nqh0 / big contract = ndh0
1861.50-1860.50
1855.50-1854.75
1850.50
1846.50-1844.75
March 2010 Dow futures resistance
symbols: emini = ymh0
10569-10573
10603-10608
10653-10657
10684-10689
March 2010 Dow futures support
symbols: emini = ymh0
10543-10538
10514-10508
10486
10458-10454
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Good Trading,
Mike Reed
TradeStalker.com
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