TradeStalker's
R.B.I. Trader's Update
12 / 20 / 2009
(Published Since 1996)
...............................................
Dateline: 5:26 pm eastern time, 12/20/2009
On Friday the ES gave us early strength to sell, as the ES
popped up to 1099.00 and then reversed. That was at the
1098.50-1099.00 resistance zone, and the market obliged by
selling off. The Thursday lows were broken, but the ES
reached 1088.50 (which was just 2 ticks over the 1088.00-
1087.00 support/ target) and then turned up. The rally took
the ES back to the 1096.50 level, and after a pullback the
ES made a little double top by reversing at 1096.25.
However, the pullback held the updated 1093.00 support and
then rallied back to 1099.00 by the close.
The SP500 has been in the same range since November 10th,
and it is one of the longest sideways patterns I've seen in
27 years. It should lead to a good sized move when it is
finally broken. It is at 1114 on the top, and 1080 on the
bottom for the SP500 futures. A possibility is that there is
a fake-out when the market finally does break out of this
range. In any case, the market needs some great news or an
unexpected shock to get out of this range it appears. It
might need to wait until the end of the month, or the first
week of 2010 to finally get out of this range.
On Friday the market was both weak and strong, as it sold
off from resistance early and then rallied off of support in
the afternoon. It was a mixed market also, as the Nasdaq 100
finished up 29 points while the SP500 gained just 6 points.
For now it looks like the market needs to stay over the last
hour lows from Friday to get out of trouble. That is at the
1093.00-1092.50 area on the ES and the 1797.00-1796.00 area
on the NQ. If those are broken, and not quickly reversed,
then the market will be in for a hard time making much out
of the upside as the bounces will then likely be sold.
On Monday look for a shorting opportunity if there is early
strength as soon as the upside stalls/ reverses. Then as
long as the market can hold the initial support areas, a
reversal should give a buying opportunity. If the initial
support is not quickly reversed, then a change could be
underway.
March 2010 SP futures resistance
symbols: emini = esh0 / big contract =sph0
1099.00-1099.50
1102.50-1103.00
1106.50-1107.25
1111.50-1112.00
March 2010 SP futures support
symbols: emini = esh0 / big contract =sph0
1093.00-1092.50
1088.00-1087.00
1081.50-1080.50
March 2010 Nasdaq futures resistance
symbols: emini = nqh0 / big contract = ndh0
1807.75-1809.00
1812.75-1813.25
1817.50-1818.25
1822.75-1824.00
March 2010 Nasdaq futures support
symbols: emini = nqh0 / big contract = ndh0
1797.00-1796.00
1788.50-1787.50
1776.00-1775.50
March 2010 Dow futures resistance
symbols: emini = ymh0
10278-10282
10309-10312
10348-10352
10394-10399
March 2010 Dow futures support
symbols: emini = ymh0
10227-10224
10201-10198
10132-10127
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---------------------------
Good Trading,
Mike Reed
Copyright (c) 2009 by TradeStalker.com, Ft Wayne, IN.
TradeStalker Updates may not be redistributed without
permission.
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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.
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