TradeStalker's
R.B.I. Trader's Update
2 / 28 / 2010
(Published Since 1996)
...............................................
Dateline: 5:26 pm eastern time, 2/28/2010
The ES opened at the 1103.50-1104.25 initial resistance area
on Friday and quickly dropped 4.50 points to 1099.00 and
turned back up. A second reversal from 1103.50 then led to a
7.50 point drop from 1103.75 to 1096.25 before reversing
again. That was 12 points of opportunity just from initial
resistance in the first 35 minutes of trading. The market
reversed course and a rally to 1106 followed. However, the
pullback to 1102.00 was just over the 1101.50 updated
support (along with 1814 on the NQ) and the ES popped up 3
points to a lower high at 1105.00. That was a spot to
reverse from long to short and a pullback then held just
over 1102.50 updated support. Then in the last hour we were
looking to short a reversal from the 1107-1108 area. The ES
popped up to 1106.50 and quickly reversed, and then it
dropped to the 1102.25 level (at the 1102.50-1102.00
support/target) at 4 pm and firmed into the close.
The market was hit very hard on Thursday morning but those
deep drops have all been reversed lately. The market is in
good shape as long as that continues. However, if that "buy
the dip, I'll get 'em back" thinking is dented, the downside
could snowball right back down to test that 1085.00-1084.50
zone.
The internal gauges are in neutral territory, however the
market is again becoming very complacent. The Vix dropped to
19.50 on Friday, and should it drop a bit more and then
reverse, that would give some sell signals.
If the market cannot hold the initial support areas on
Monday, or at least quickly reverse back up if broken, then
the trends are turned back down. If those areas are broken
then a trip back to the 1096.75-1096.00 area on the ES would
need to find good buying come back in, otherwise the drops
won't be seen as buying opportunities, and the downside
could gather steam. On the other side of the coin, if the ES
pops up to the 1107.50-1108.50 area and does not reverse,
then we could see the upside pick up steam as shorts scamper
for cover. A rally up to the 1110.50-1111.00 area on the ES
should be met with selling unless the market is going into a
melt-up type of move. That is doubtful at this time.
March 2010 SP futures resistance
symbols: emini = esh0 / big contract =sph0
1106.50
1107.50-1108.50
1110.50-1111.00
1114.50-1115.00
March 2010 SP futures support
symbols: emini = esh0 / big contract =sph0
1103.00-1102.50
1100.00-1099.50
1096.75-1096.00
1090.75-1090.00
1087.50
1085.00-1084.50
March 2010 Nasdaq futures resistance
symbols: emini = nqh0 / big contract = ndh0
1823.25
1826.25-1827.25
1833.25-1834.00
1838.50-1839.25
March 2010 Nasdaq futures support
symbols: emini = nqh0 / big contract = ndh0
1817.75-1817.25
1814.00-1812.75
1808.50-1807.50
1799.00-1798.00
1793.50
1789.50-1788.50
March 2010 Dow futures resistance
symbols: emini = ymh0
10343
10390-10395
10419-10421
10435-10439
March 2010 Dow futures support
symbols: emini = ymh0
10320-10316
10292-10288
10261-10257
10215-10212
10194
10171-10167
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---------------------------
Good Trading,
Mike Reed
Copyright (c) 2010 by TradeStalker.com, Ft Wayne, IN.
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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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