TradeStalker's
R.B.I. Trader's Update
2 / 4 / 2010
(Published Since 1996)
...............................................
Dateline: 6:46 pm eastern time, 2/4/2010
The ES opened down 11.50 points on Thursday, and then went
trend-down to 1070.25. I then gave new resistance at the
1073.50-1074.00 area, and the bounce reversed from 1073.75,
giving as good of a low risk entry as was possible. Then
after dropping to 1063.75, the ES bounced back to the
1069.50-1070.25 resistance. Staying under the 1070 level, a
double top at 1069.50 set up yet another good reward/ risk
opportunity as the ES dropped to and then through the 1062
target.
The market went from very oversold to overbought at
Wednesday's close, and with the damage that was done by
breaking through 1093.50, the downside snow-balled lower. On
the first leg down from the 1147 top I stated that all that
was missing was a sign of capitulation. We got some of signs
of that on Thursday. The closing Trin on Thursday was 3.43,
which normally means the market is within a day of putting
together a good rally. In addition to that, after dropping
down to the 21 area, the Vix reversed and jumped up over 20%
on Thursday. The market has good downside momentum, but odds
of a decent rally occurring are pretty good.
We get the Jobs data before the open on Friday. If the
market opens lower, look for a reversal back up to set up a
trade on the long side, especially if there is a reversal
from the 1058.50-1057.50 area on the ES. If that plays out,
then beware of a reversal if the ES rallies back to the
1069.50-1070.25 resistance area and the move stalls out. If
that occurs, then the bears will still have the upper hand
as the bounces would still be failing. If that area is
exceeded, then a pullback would need to hold over the 1064
area to keep a new uptrend intact.
March 2010 SP futures resistance
symbols: emini = esh0 / big contract =sph0
1063.75-1064.25
1069.50-1070.25
1073.50-1074.00
1078.25-1079.00
March 2010 SP futures support
symbols: emini = esh0 / big contract =sph0
1059.50
1058.50-1057.50
1052.25-1051.50
1044-1042 {SP500 Cash}
March 2010 Nasdaq futures resistance
symbols: emini = nqh0 / big contract = ndh0
1736.00-1736.50
1743.50-1744.50
1748.25-1749.00
1756.50-1758.00
March 2010 Nasdaq futures support
symbols: emini = nqh0 / big contract = ndh0
1731.50
1728.50-1727.50
1721.50-1719.75
March 2010 Dow futures resistance
symbols: emini = ymh0
9987-9991
10029-10034
10056-10060
10099-10103
March 2010 Dow futures support
symbols: emini = ymh0
9955
9947-9943
9902-9898
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