TradeStalker's
R.B.I. Trader's Update
3 / 7 / 2010
(Published Since 1996)
...............................................
Dateline: 5:26 pm eastern time, 3/7/2010
The ES gapped up 7 points on Friday and after a brief
pullback the upside reasserted itself and the ES bounced
from 1126.00 to 1135.00 in trend up fashion into the 2:20-
2:40 time frame. Finding good support at the 1132.50 level,
the market broke out over the 1135 high and tacked on almost
4 more points. An instant message warned of resistance at
1138 on a bounce, and that was rejected just before the
close.
NOTE: I'm having a camp this week, so my apologies if I
don't get out as many intraday updates as usual over the
next few days. The instant messenger will work the best for
those.
The market broke the range to the upside on Friday, and now
the task will be holding on to those gains. The internal
gauges are at overbought extremes. My RBI oscillator is in
sell territory, and the 3 day Thrust oscillator is at +.57.
Other internal gauges like the McClellan oscillator are more
overbought than at the January top. Also, the Vix closed
more than 10% under its 10 day average close, and also at a
new low for the year. A reversal would give 5 sell signals
on Monday. Finally, the closing Trin on Friday was at .40.
That is equivalent to a closing Trin of 2.50 if the data is
reversed. On February 23rd, with the SP500 cash at 1094.60
and a closing Trin at 3.03 I stated that it should mark a
low within 7 trading hours. The market headed higher and
hasn't looked back since then. At this juncture it looks
like a top should occur on Monday, if it didn't top already
on Friday.
That said, the market does have a good bid on the deeper
drops. If there is a selloff that can hold and reverse from
the 1133.00-1132.50 area on the ES, it will keep the market
from falling apart. If the market sells off to the Friday
afternoon low areas, and does not quickly reverse, then a
bigger drop is in the cards. Unless that happens, there
should be two-sided action at best on Monday so look to get
short if the Friday highs are tested and rejected. If we get
a selloff and the 1133.00-1132.50 area is not defended, then
things will be changing short term.
March 2010 SP futures resistance
symbols: emini = esh0 / big contract =sph0
1138.00-1138.75
1141.50-1142.00
1146.50-1147.00
March 2010 SP futures support
symbols: emini = esh0 / big contract =sph0
1135.50-1135.00
1133.00-1132.50
1126.00
1123.50-1123.00
1120.50-1120.00
March 2010 Nasdaq futures resistance
symbols: emini = nqh0 / big contract = ndh0
1888.75-1889.50
1893.75-1894.50
1902.00-1903.00
March 2010 Nasdaq futures support
symbols: emini = nqh0 / big contract = ndh0
1883.00-1882.00
1879.50-1878.50
1868.50
1860.75-1859.00
1854.75-1854.00
March 2010 Dow futures resistance
symbols: emini = ymh0
10558-10561
10581-10584
10616-10620
March 2010 Dow futures support
symbols: emini = ymh0
10532-10528
10514-10511
10468
10440-10436
10423-10419
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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 ($ES_F). 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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Disclaimer
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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
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
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is substantial. You can lose more than your original
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