TradeStalker's
R.B.I. Trader's Update
1 / 21 / 2010
(Published Since 1996)
...............................................
Dateline: 6:28 pm eastern time, 1/21/2010
The ES popped up and then reversed from the 1136.75-1137.50
resistance in the first 30 minutes, then dropped fast to the
1119.50-1118.50 support and there was a small bounce. It
stopped at 1122.50 which was updated via instant message,
and then an 11 point drop to 1111.50 followed. After a
bounce, a new low was made at 1110.75 and then a bounce to
the 1119.50 resistance failed. A drop of 7.75 points to
1111.75 followed, and then after a bounce back to 1117.00
the market proved it was in trouble by reversing and selling
off into the close.
The market broke down to where the year closed out on
Thursday. The market is not yet oversold, and the drop so
far is not the normal slow drift that other recent
pullbacks. A top at the 1147 level won't be seen for awhile,
that looks pretty certain. The market also woke up from the
complacent mood, as the VIX jumped over 19% on Thursday. If
there is another sizable drop, and the SP500 cash and
futures reach the 1080 area and reverse, that will set up a
good trade on the long side. Until then, or until the market
shows signs of changing, the bounces should continue to fail
so stay with shorting the bounces for now.
On Friday look for early strength to set up a very good
shorting opportunity, if the market can muster a bounce. A
lower open that reverses in the first 20-40 minutes should
set up a scalp on the long side. However don't fall in love
with the long side just yet, as the bounces are still
shorting opportunities. The bears finally have the upper had
and are pressing on the bounces, so only a break/ hold over
the 1119.00-1119.50 area on the ES AND the 1857.50-1858.00
area on the NQ will have a chance to turn things around.
March 2010 SP futures resistance
symbols: emini = esh0 / big contract =sph0
1117.00
1119.00-1119.50
1122.50-1123.00
1125.75-1126.25
March 2010 SP futures support
symbols: emini = esh0 / big contract =sph0
1109.50-1108.50
1104.25-1103.50
1099.00-1098.25
March 2010 Nasdaq futures resistance
symbols: emini = nqh0 / big contract = ndh0
1852.50
1857.50-1858.00
1862.50-1863.00
1868.00-1869.50
March 2010 Nasdaq futures support
symbols: emini = nqh0 / big contract = ndh0
1836.50-1836.00
1832.00-1831.25
1824.50-1822.75
March 2010 Dow futures resistance
symbols: emini = ymh0
10370
10384-10388
10423-10427
10468-10475
March 2010 Dow futures support
symbols: emini = ymh0
10315-10310
10279-10275
10230-10225
CLICK HERE for FREE Trading Articles and Videos!
Good Trading,
Mike Reed
TradeStalker.com
Copyright (c) 2010 by TradeStalker.com, Ft Wayne, IN.
TradeStalker Updates may not be redistributed without
permission.
This publication's primary focus is trading the index
futures. However, you can also use my nightly updates to
trade the following ETF's (SPY), (QQQQ), (SDS), (QID),
(DIA), and (DOG)
www.TradeStalker.com
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.
*************************************************
No comments:
Post a Comment