TradeStalker's RBI Update 12/28/09

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TradeStalker's

R.B.I. Trader's Update

12 / 28 / 2009

(Published Since 1996)

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Dateline: 6:01 pm eastern time, 12/28/2009

We were expecting two-sided action on Monday and we got it.
We were shorting early strength that reversed, and about 10
minutes into the day that occurred when the ES turned down
from 1126.25 and broke 1124.00. The ES made its low at
1119.50, and per instant message we covered most of the
shorts at 1119.75. That was at the 1120.00-1119.50 initial
support zone, and able to hold that area and then lead
higher by the Dow for a change, the market rallied back with
the ES reaching the 1124.00 resistance before settling for
the day session. The Nasdaq ran into a wall of resistance at
the 1878.50 level and closed poorly.

Most, but not all, of the internal indicators backed out of
extreme overbought territory on Monday. We get the Consumer
Confidence number 30 minutes into the trading day on
Tuesday. The market is not staying in new high territory for
very long, so beware of failed rally attempt if a push into
new high ground stalls out. On the other side of the coin,
the pullbacks find buyers on every dip over the last 6 days.
When a pullback doesn't get reversed either in the first
hour of the day, or can not recover from losses late in the
day, then the mood will likely change.

Unless or until that occurs, look for a shorting opportunity
on a bounce to test the Monday highs, or if the market makes
token higher highs, and the move stalls out. Then, if the
market obliges and a drop to test of the Monday low is
reversed, that should set up a trade on the long side. If
the 1120.00-1119.50 area on the ES is not defended, then the
1117.75-1117.00 area would fill a gap. If the market gets
there, a reversal from near that zone would need to occur
quickly or else there could be bigger trouble in store for
the market going into year end.

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

1124.00
1125.75-1126.25
1128.50-1129.00
1132.00-1134.50
1154.00-1156.00 major


March 2010 SP futures support
symbols: emini = esh0 / big contract =sph0
1121.25
1120.00-1119.50
1117.75-1117.00
1115.00-1114.75
1111.25-1110.50


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

1878.50
1881.00-1882.00
1885.50-1886.00
1892.50-1894.50

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

1874.25
1868.00-1767.25
1864.50-1862.75
1858.50-1857.75
1853.00-1851.75

March 2010 Dow futures resistance
symbols: emini = ymh0

10492
10511-10514
10530-10534
10550-10555

March 2010 Dow futures support
symbols: emini = ymh0

10465
10451-10448
10432-10428
10399-10395
10349-10344


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Mike Reed
TradeStalker.com

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Past performance does not guarantee future performance.
The foregoing has been prepared solely for informational
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research and data believed reliable, but there is no
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This is not an endorsement or recommendation of the SP500
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