TradeStalker's
R.B.I. Trader's Update
3 / 2 / 2010
(Published Since 1996)
...............................................
Dateline: 7:26 pm eastern time, 3/2/2010
The 1121.50-1122.50 area on the ES was rejected shortly
before stocks opened and the early strength was sold as the
ES dropped 4.50 points to 1116.25 before turning up. That
first decent pullback was reversed, and a tepid buy-up to
the 1121.50-1122.50 area followed. At 1:55 pm (with the
market at its highs) I gave a lot of reasons to avoid longs
via Instant Message, and after taking out 1119 that level
turned into resistance as the market gave back its gains.
The ES reached 1105.25 to fill the gap on the daily chart
then bounced a bit into the close.
The futures topped out at a good resistance area on Tuesday,
and now the market is getting short term overbought again.
The McClellan oscillator reached +199, and my 3 day Thrust
oscillator reached +.62. in addition to that, the Vix gave 2
sell signals at Tuesday's close. This should tilt the odds
in favor of selling strength on Wednesday. We will get the
Fed's Beige Book release at 2 pm on Wednesday and then the
volatility should begin.
If the market opens higher look for that to set up a trade
on the short side. A weak market would be sold from the
1118.50-1119.25 area on the ES. If that plays out, then a
drop that reverses from the 1112.00-1111.25 area on the ES
could set up a trade on the long side. If that occurs, don't
overstay that side as the upside appears to be very limited.
A decent bounce that fizzles out near the Tuesday highs
should be sold if the indicators are not a day early. If the
Tuesday highs are tested and rejected, then a good sized
drop could come from that. If the Tuesday highs are easily
exceeded, then a run up to the 1126.50-1128.00 area could
occur before any attempt to reverse directions occurs.
March 2010 SP futures resistance
symbols: emini = esh0 / big contract =sph0
1118.50-1119.25
1122.00-1122.75
1126.50-1128.00
March 2010 SP futures support
symbols: emini = esh0 / big contract =sph0
1115.25
1112.00-1111.25
1107.50-1106.50 **strong, key
1104.25-1103.50
March 2010 Nasdaq futures resistance
symbols: emini = nqh0 / big contract = ndh0
1853.50-1854.25
1861.75-1862.25
1867.50-1870.00
March 2010 Nasdaq futures support
symbols: emini = nqh0 / big contract = ndh0
1846.50
1842.50-1841.75
1836.50-1834.75 **strong, key
1827.00-1825.25
March 2010 Dow futures resistance
symbols: emini = ymh0
10408-10412
10436-10440
10486-10494
March 2010 Dow futures support
symbols: emini = ymh0
10377
10369-10364
10322-10319 **strong, key
10301-10297
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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
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)
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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
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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
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