TradeStalker's
R.B.I. Trader's Update
2 / 17 / 2010
(Published Since 1996)
...............................................
Dateline: 6:04 pm eastern time, 2/17/2010
The gap up open reversed from the 1097.75-1098.50 resistance
on the ES and it pulled back 3.50 points to 1094.50 before
bouncing. Then, the 2-sided action we expected was evident.
The short side on the pops over 1098 were the better
reward/risk opportunities for scalps as the back-and-forth
action was in play all day. The market did avoid a break-
down however by holding 1096 and rallying back to make a
token new high at the close.
On Thursday we get Initial Claims and PPI before the open,
and then the Leading Indicators and Philly Fed releases at
10 am. While the intermediate term internal gauges have
firmed up, the short term internal gauges are now very
overbought nearly across the board. The Vix dropped to be
more than 10% under its 10 day average close. If the Vix
drops early on Thursday, and then reverses back up, that
should signal the start of a decent pullback. Unless this
move is in the early stage of heading towards or through the
yearly highs, a breather is due and we should get a bit of a
pullback.
On both Tuesday and Wednesday the market gapped open above
the previous days highs. If the same occurs on Thursday, and
the ES reverses (especially if the reversal comes from the
1102.50-1104.00 area), that should set up a pullback at
least. If the ES can stay over 1098 on a dip, the upside
will remain strong. However, if that 1098 area is broken,
and not quickly reversed back to the upside, then pressure
should be on for a decent drop. The 1089.00-1088.50 zone
should/ must hold if the market gets hit with some selling
on Thursday. If the market gets down there, and cannot turn
around and rally back, then we could see a day or so of
downside action before the market gets footing and turns
back up.
March 2010 SP futures resistance
symbols: emini = esh0 / big contract =sph0
1100.00
1102.50-1104.00
1107.50-1108.00
1110.50-1112.00
March 2010 SP futures support
symbols: emini = esh0 / big contract =sph0
1098.00
1096.50-1096.00
1093.75-1093.00
1089.00-1088.50
1086.75-1086.25
March 2010 Nasdaq futures resistance
symbols: emini = nqh0 / big contract = ndh0
1812.50
1816.50-1817.00
1821.50-1822.50
1828.00-1829.00
March 2010 Nasdaq futures support
symbols: emini = nqh0 / big contract = ndh0
1809.59
1807.00-1806.50
1803.25-1802.25
1795.25-1794.50
1792.50-1791.50
March 2010 Dow futures resistance
symbols: emini = ymh0
10302
10335-10342
10378-10383
10402-10407
March 2010 Dow futures support
symbols: emini = ymh0
10289
10280-10277
10257-10252
10204-10200
10182-10179
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Good Trading,
Mike Reed
TradeStalker.com
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