TradeStalker's
R.B.I. Trader's Update
1 / 28 / 2010
(Published Since 1996)
...............................................
Dateline: 6:06 pm eastern time, 1/28/2010
The ES opened higher then reversed from 1 tick over the
1096.75-1097.50 resistance, and it drop to the 1085.25-
1084.50 support zone and bounced. The updated resistance at
1090 was rejected and the move was trend down to 1074.25
before lunch-time trading. The break / hold over 1081 kept
the new uptrend intact to 1085.25. Old support turned
resistance, and the reversal set up a drop to 1078.50. The
rally from there took the ES to the 1088.50-1089.50 updated
resistance, reversing fast from 1088.75, and then dropped to
1078.25 in the final minutes of trading.
The market has been giving good moves in both directions,
and that should continue. The old 1082-1081 support area was
broken, yet the downside has not accelerated just yet.
Instead, the downside reverses and we end up with a good
rally. Then, per usual of late, the market gets stretched
too far and longs take profits while shorts jump on-board
and press the market lower.
Although the internal gauges are back into oversold
territory, it still isn't time to be aggressive on the long
side. The market has a reason to rally, but even if it does,
it would need to get through the Thursday highs and not
quickly reverse as has been the case. The market was sold
early on Thursday, bounced nicely, then dropped pretty hard
to end the day. So, a similar pattern could occur on Friday.
Look for early strength to set up a shorting opportunity as
soon as upside momentum stalls and the market begins to roll
over. That could set up nicely if there is an early pop that
reverses from just under or at the 1088.50-1089.00 zone on
the ES. If that plays out, then beware of a reversal back up
from either a test of the 1078.50-1078.00 zone, or the
1073.50-1073.00 area if no reversal occurs at the initial
support areas. If those areas are not held, then we could
see a drop into the 1060's before there is an oversold
bounce.
March 2010 SP futures resistance
symbols: emini = esh0 / big contract =sph0
1083.50-1084.00
1088.50-1089.00
1092.50-1093.00
1097.50-1098.00
March 2010 SP futures support
symbols: emini = esh0 / big contract =sph0
1078.50-1078.00
1073.50-1073.00
1068.00-1067.00
March 2010 Nasdaq futures resistance
symbols: emini = nqh0 / big contract = ndh0
1780.00-1780.50
1786.00-1786.50
1795.75-1796.75
1804.00-1805.00
March 2010 Nasdaq futures support
symbols: emini = nqh0 / big contract = ndh0
1769.00-1768.50
1760.00-1759.25
1752.00-1750.50
March 2010 Dow futures resistance
symbols: emini = ymh0
10092-10096
10136-10139
10167-10172
10211-10214
March 2010 Dow futures support
symbols: emini = ymh0
10051-10045
10005-9999
9978-9972
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Good Trading,
Mike Reed
TradeStalker.com
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