TradeStalker's
R.B.I. Trader's Update
3 / 10 / 2010
(Published Since 1996)
...............................................
Dateline: 6:38 pm eastern time, 3/10/2010
The market opened unchanged on Wednesday and then the ES
rallied to the 1147.00-1148.00 resistance zone before noon.
A 1-2-3 top formed off of the 1148.00 high, and the ES
dropped to 1138.25 before turning again. A test of the
1147.50 level was sold, then a pullback to 1141.50 occurred.
With 30 minutes left in stock trading the market bounced
back a bit into the close.
First off, the new front month for our futures contracts
rolls over to June on Thursday. M is the symbol for June
futures.
The market remains overbought readings not seen in a decade
by a few measures. So far it has led only to back and forth
action. On Wednesday the ES tested the January globex high
of 1148 and was rejected twice. That is at the 1142.75-
1143.25 area on the June futures. A move over that zone
must stick, instead of reverse like on Wednesday, to get a
move towards the 1154 area on the SP500 cash in gear. The
upside has not been able to stick, so if the market has
enough juice to get over the 1143 area on the ES, then a
reversal from near that 1154 level on the SP500 cash (around
1149-1150 on the ES) should set up a very good shorting
opportunity.
We had the same pattern on Tuesday and Wednesday, with early
rallies that fail. On Thursday, look for a shorting
opportunity if there is early strength and the move is
reversed from near the initial resistance zones. If that
plays out, a drop to the initial support areas needs to be
defended. If the market loses its underlying bid, and the NQ
breaks/ holds under its 1911 area, then pressure should be
on short term.
June 2010 SP futures resistance
symbols: emini = esm0 / big contract =spm0
1142.75-1143.25
1146.00-1146.50
1154 {ON SP500 Cash}
June 2010 SP futures support
symbols: emini = esm0 / big contract =spm0
1137.50-1137.00
1134.50-1134.00
1131.50-1130.75
1129.25-1128.50
June 2010 Nasdaq futures resistance
symbols: emini = nqm0 / big contract = ndm0
1917.50-1918.50
1922.00-1923.00
June 2010 Nasdaq futures support
symbols: emini = nqm0 / big contract = ndm0
1911.00-1910.25
1908.00-1907.50
1903.75-1903.00
1898.50-1897.50
June 2010 Dow futures resistance
symbols: emini = ymm0
10516-10518
10542-10548
June 2010 Dow futures support
symbols: emini = ymm0
10481-10477
10457-10453
10422-10418
10402-10397
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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
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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