TradeStalker's
R.B.I. Trader's Update
2 / 7 / 2010
(Published Since 1996)
...............................................
Dateline: 5:26 pm eastern time, 2/7/2010
The ES popped up to 1064.00 on Friday, (key resistance was
at 1063.75-1064.25) and then they dropped 11.75 points to
1052.25 (we had support at 1052.25-1051.50). From there, the
ES rallied back to 1063.00 and fizzled, setting up another
short. After a 12+ point drop to a 1050.25 low, I gave new
resistance at 1056.75 and that was nailed before the 16.00
point trend-down move to 1040.75 on the ES and 1044.50 on
the SP500 Cash. That was just over the major support at the
1044-1042 area, the ES bounced to the 1048.00 updated
resistance. From 1048.00, a 3.50 point drop to 1044.50
reversed and when 1048 was cleared, I sent an I.M. saying
that the ES was good over 1047.00, which held just before a
sprint to 1064.00 resistance... quite a day to end a wild
week.
The market got hammered last week. However, on Friday the
market made a low at a logical support area, and with the
market being very oversold, the ES rallied back 23.25
points. There were other key areas broken on the way to the
Friday lows, so it's too soon to say that a bottom is in
place. The market is still somewhat oversold, so it will be
important for the market to hold over the initial support
areas if there is early weakness. If they do not, then a
drop should hold the 1048.00-1047.50 area on the ES if it is
going to keep from getting hit hard again. If the 1044-1042
area on the SP500 cash breaks, and the market doesn't
quickly reverse back to the upside, then the downside could
gather some momentum. There is a big cluster of numbers at
the 1022-1021 area on the ES if panic hits the market on
Monday.
The futures settled well under fair value, so the initial
resistance that was met twice on Friday is the first hurdle
for the market to clear. If the upside isn't reversed at the
initial resistance areas, then the ES could go for the
1069.50-1070.25 zone before having trouble. So, look to sell
early strength when the upside stalls/ reverses. Then, if a
pullback can hold the initial support, the up-trends will
remain intact and the market should head back up. If the
initial support is not held, then the 1048.00-1047.50 area
is about as far as a normal pullback should go without
breaking back down. If that is the case, the major area at
the Friday lows must be defended, otherwise a second panic
selloff in the last 3 days could hit the market.
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
1056.25-1055.50
1051.00
1048.00-1047.50
1040.75-1039.50 MAJOR
1032.00-1031.50
1022.00-1021.00 Panic major area
March 2010 Nasdaq futures resistance
symbols: emini = nqh0 / big contract = ndh0
1748.25-1749.00
1753.50-1754.50
1758.25-1759.00
1765.50-1766.00
March 2010 Nasdaq futures support
symbols: emini = nqh0 / big contract = ndh0
1737.00-1736.00
1727.00
1723.50-1722.50
1712.00-1710.75 MAJOR
1700.75-1699.75
1690.50-1689.50 Panic major area
March 2010 Dow futures resistance
symbols: emini = ymh0
9977-9982
10029-10034
10056-10060
10099-10103
March 2010 Dow futures support
symbols: emini = ymh0
9909-9905
9866
9848-9846
9798-9791 MAJOR
9714-9709
9623-9618 Panic major area
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Good Trading,
Mike Reed
TradeStalker.com
Copyright (c) 2010 by TradeStalker.com, Ft Wayne, IN.
TradeStalker Updates may not be redistributed without
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This publication's primary focus is trading the index
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