TradeStalker's
R.B.I. Trader's Update
2 / 22 / 2010
(Published Since 1996)
...............................................
Dateline: 6:26 pm eastern time, 2/22/2010
The ES popped up to 1111.00 (key resistance was 1111.00-
1112.00) in the first 5 minutes and that was sold and a 7.50
point drop to the 1103.50 updated support occurred in the
first 30 minutes on Monday. The market turned back up and a
tricky stair-step move up to 1110.25 fizzled out with about
45 minutes left in stock trading. With the ES at 1109.50 and
the NQ at 1821, I sent an instant message stating:
(Feb 22-15:29) Mike: Wedge like pattern forming,
the NQ is toppy, I'm small short that up here for
a decent drop.
Not long after that we got a decent drop as the ES rolled
over and dropped to 1104.75 while the NQ reached 1814.25
just before stocks closed. Buying/ short covering came in
after stocks closed and the futures bounced to settle above
fair value.
All of the gyrations on Monday pretty much erased the
overbought status the market was in. There still is a good
deal of complacency, however. The late day dumping of stocks
wasn't a surprise, but the way the futures bounced right
back was surprising. It looks like the 1104.00-1103.50 area
on the ES should continue to be good support. As long as
that area is defended, then the market will hold together
and likely give more 2 sided action. Otherwise, if that area
is broken and not quickly reversed, then the trends on all
but a weekly timeframe will roll over and things will be
changing.
We get the Consumer Confidence number 30 minutes into the
day on Tuesday. If the market opens lower, then a reversal
back up sets up a trade on the long side. If that plays out,
a 3rd attempt to get through the 1111-1112 area should be
under way. If the market gets back up there, it will need to
push through and then not reverse. The market reversed there
twice in the last 2 trading days, so if the SP500 cash can
get back over the 1114.84-1115.49 area and avoid being sold
from that zone, the upside should extend towards the
1117.50-1118.50 zone on this leg up before a decent reversal
back down occurs.
March 2010 SP futures resistance
symbols: emini = esh0 / big contract =sph0
1108.00-1108.50
1111.00-1112.00 **strong
1115.00
1117.50-1118.00
March 2010 SP futures support
symbols: emini = esh0 / big contract =sph0
1104.50-1103.50
1098.75-1098.00 **key
1093.75-1093.00
March 2010 Nasdaq futures resistance
symbols: emini = nqh0 / big contract = ndh0
1821.50-1822.00
1828.50-1830.00 **strong
1833.00
1837.75-1838.50
March 2010 Nasdaq futures support
symbols: emini = nqh0 / big contract = ndh0
1815.50-1814.50
1810.50-1809.50 **key
1803.25-1802.25
March 2010 Dow futures resistance
symbols: emini = ymh0
10375-10378
10402-10406 **strong
10439
10462-10467
March 2010 Dow futures support
symbols: emini = ymh0
10350-10346
10322-10319 **key
10267-10262
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---------------------------
Good Trading,
Mike Reed
Copyright (c) 2010 by TradeStalker.com, Ft Wayne, IN.
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permission.
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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.
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