TradeStalker's
R.B.I. Trader's Update
2 / 1 / 2010
(Published Since 1996)
...............................................
Dateline: 6:16 pm eastern time, 2/1/2010
The ES broke and held the 1074.50-075.25 initial resistance,
which was needed to get a rally going. The ES rallied to the
1084.00-1084.50 area about 40 minutes into the trading day,
and that area set up quick shorting opportunities... there
was a 5.75 point drop, a 5.00 point drop, a 4.50 point drop,
a 3.50 point drop and then a 2.25 point drop before finally
breaking out with 5 minutes left in stock trading.
The market is putting together the overdue oversold rally.
We'll see just what the market is made of soon. The
pullbacks made higher lows on the way up on Monday, and
after having so much trouble getting through that 1084.00-
1084.50 area, it was finally broken in the late trading.
That area should act as pretty good support now, if the
market is going to continue to be strong.
If that area is not held, then the 1081.00-1080.50 zone will
need to be quickly reversed if tested. That is Monday's last
hour low area, and is about as far as a pullback should go
before buyers get a bit scared and wait for lower prices
before getting involved. If that is the case, then a 2-sided
day or a flat out reversal will occur if the market spends
much time under the last hour lows from Friday. We would
need to see the market reverse after testing the 1076.00-
1075.25 area on the ES to get the 2-sided action.
On the upside, as long as the 1084.50-1084.00 area is held
on a pullback, the ES could rally back towards the 1097-1098
zone on this leg up. That would be a very important area if
it is reached. If the rally continues on Tuesday, and that
zone is tested and the move stalls out, or 1097-1098 is
rejected, then a reversal could set up a nice sized move on
the downside.
Look for early strength to set up a shorting opportunity
when the upside stalls/ reverses, especially if the ES
reverses from near the 1092.25-1093.25 zone. If that plays
out, then the initial support areas will need to hold on a
pullback to keep the upside intact. If that area is broken
after there has been early strength, then the trends will
have rolled over and the short side then should be the path
of least resistance.
March 2010 SP futures resistance
symbols: emini = esh0 / big contract =sph0
1086.50
1088.50-1089.00
1092.25-1093.25
1097.50-1098.25
March 2010 SP futures support
symbols: emini = esh0 / big contract =sph0
1084.50-1084.00
1081.00-1080.50 Key
1076.00-1075.25
1072.00-1071.25
March 2010 Nasdaq futures resistance
symbols: emini = nqh0 / big contract = ndh0
1758.25
1763.25-1765.00
1770.50-1771.75
1786.50-1788.00
March 2010 Nasdaq futures support
symbols: emini = nqh0 / big contract = ndh0
1756.00-1755.50
1751.50-1751.00 Key
1743.00-1741.50
March 2010 Dow futures resistance
symbols: emini = ymh0
10148
10154-10156
10187-10192
10228-10235
March 2010 Dow futures support
symbols: emini = ymh0
10135-10132
10105-10103 Key
10069-10063
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