TradeStalker's
R.B.I. Trader's Update
2 / 2 / 2010
(Published Since 1996)
...............................................
Dateline: 5:56 pm eastern time, 2/2/2010
The early game-plan was to short early strength, then beware
of a reversal from the 1084.50-1084.00 key support area. The
ES popped up to the 1088.50-1089.00 zone and reversed,
dropping from 1089.00 to 1084.75 (1084.50-1084.00 pivotal
support) in 5 minutes and then turned back up. The bounce
stalled and reversed from 1088.50 and then dropped to the
1084.75 support again. The ES rallied 13 points to the 1097-
1098 resistance zone shortly after noon. Two small pullbacks
from 1097.00 followed, but the 1094.50 updated support held,
setting up a bounce to 1099.50 just before 2 pm. A pullback
to 1095.50 was reversed and a sprint to a 1101.50 high
occurred, and then selling took the market lower into the
close.
The 2 day rally has turned the short term internal gauges
from very oversold to modestly overbought. If there is one
more day of decent action, that would stretch the indicators
into overbought territory nearly across the board. The
sentiment sure turned bullish fast, and if the Vix drops a
bit more and then reverses, that will give some sell
signals.
The ES didn't like it over 1100 on Tuesday afternoon, and
reversed from just above that level. The ES settled about 3
points under fair value, so if there is a pop up to the
1099.50-1100.50 area that reverses early on Wednesday, that
should set up a good shorting opportunity. If that plays
out, or if the ES reverses from a bit higher up early in the
day near the 1103.50-1104.00 area, then the initial support
at the 1095.50-1094.75 area on the ES will need to be
defended, or quickly reversed if broken. The pullbacks have
been setting up good buying opportunities, reversing as soon
as the downside momentum fizzles and prices turn back up. So
that area should hold if the market is still in good shape.
If there is a decent sized pullback/ selloff, then a test of
the 1080.50-1079.75 area would need to reverse quickly,
otherwise we are having another technical breakdown and the
downside could gather some steam.
March 2010 SP futures resistance
symbols: emini = esh0 / big contract =sph0
1099.50-1100.50
1103.50-1104.00
1106.75-1107.50
March 2010 SP futures support
symbols: emini = esh0 / big contract =sph0
1095.50-1094.75
1091.50-1091.00
1088.50-1088.00
1084.50-1084.00
1080.50-1079.75
March 2010 Nasdaq futures resistance
symbols: emini = nqh0 / big contract = ndh0
1774.00-1774.50
1778.75-1779.50
1784.25-1786.00
March 2010 Nasdaq futures support
symbols: emini = nqh0 / big contract = ndh0
1765.00-1764.25
1758.75-1758.00
1751.75-1751.00
1748.50-1747.75
1742.50-1741.75
March 2010 Dow futures resistance
symbols: emini = ymh0
10247-10252
10274-10278
10302-10309
March 2010 Dow futures support
symbols: emini = ymh0
10212-10209
10183-10180
10164-10161
10125-10121
10105-10103
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