TradeStalker's
R.B.I. Trader's Update
1 / 25 / 2010
(Published Since 1996)
...............................................
Dateline: 6:01 pm eastern time, 1/25/2010
The bottom line last night for an early trade setup stated:
"If the market opens higher but reverses around
the 1097.50-1098.50 area in the first 30 minutes,
that should set up a trade on the short side for a
pullback towards the Friday closes, or lower."
Early strength reversed from just over the 1098.50
resistance on the e-mini SP futures about 30 minutes into
the day, then dropped 7 points to 1091.75 which was Friday's
closing range. After a bounce, a new low was made at 1089.75
and the trend down move reversed. After reaching 1097.75,
there was a pullback to 1094.50 updated support. A bounce of
5 points on the ES to 1099.50 followed. Per I.M. the bounce
was a short at 3:14pm at 1098.25 with updated support at
1092.50 that was reached just before the close.
The market couldn't hold on to its gains on Monday, and
given how oversold the market was, that was a bit unusual.
That is a sign of weakness, and most of the indicators
backed out of extreme oversold territory. We got our
oversold rally, but the market couldn't sustain the
strength. A trip towards the low 1080's on the ES is still
possible before there is a decent turn around.
On Tuesday we get the Consumer Confidence number 30 minutes
into the trading day. At the moment, the market might be too
low to short, so a decent bounce should occur if the market
opens weak. If that occurs, and the market bounces back
towards the 1095.50 area on the ES, that could bring in some
selling. If that area is exceeded, then a low could be in
place for a run back towards the Monday highs, but a move
back up there that stalls out would be a very good odds
shorting opportunity.
March 2010 SP futures resistance
symbols: emini = esh0 / big contract =sph0
1095.50
1099.00-1099.50
1104.00-1104.50
1111.00-1111.50
March 2010 SP futures support
symbols: emini = esh0 / big contract =sph0
1092.00-1091.50
1087.00-1086.25
1082.25-1081.50
March 2010 Nasdaq futures resistance
symbols: emini = nqh0 / big contract = ndh0
1803.75
1809.50-1810.00
1815.75-1816.75
1826.50-1827.50
March 2010 Nasdaq futures support
symbols: emini = nqh0 / big contract = ndh0
1792.50-1792.00
1783.50-1782.50
1777.25-1776.50
March 2010 Dow futures resistance
symbols: emini = ymh0
10168
10205-10208
10258-10263
10339-10343
March 2010 Dow futures support
symbols: emini = ymh0
10138-10134
10104-10101
10064-10059
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---------------------------
Good Trading,
Mike Reed
Copyright (c) 2010 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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