TradeStalker's
R.B.I. Trader's Update
3 / 17 / 2010
(Published Since 1996)
...............................................
Dateline: 6:26 pm eastern time, 3/17/2010
The market gapped up on Wednesday and rallied for 30 minutes
to 1161.50, just under 1162 resistance, and then a drop to
1158.75 followed. That was over updated support and the
market went into trend-up mode. Then, around 1:35 pm a
parabolic move to 1165.50 reversed, and after a 2 point dip
the 1165.25 was tested. The reversal from that lower high
triggered a 1-2-3 top entry at 1164.25 and the ES dropped
another 8.50 points to 1157.75 with just over 30 minutes
left. That was 1 tick over the early low, and a bounce back
to 1162.00 resistance was tested at the 4 pm close for
stocks.
The afternoon reversal looks like it should be the start of
a decent sized selloff short term. The market averages do
not like the thin air up above, and if there is any early
strength on Wednesday it will set up a shorting opportunity.
The highs on Wednesday were made on parabolic run-ups, and
those chasing the long side will be eager to get out if
there is further strength. The daily indicators show across
the board divergences short term, and the Vix gapped down to
a new multi-year low on Wednesday. If that is reversed on
Thursday, and gets back over 17.23, then it's a red flag for
more downside.
On the downside, the Wednesday afternoon lows are the first
key support areas. If the market is going to avoid a pretty
sharp drop, a test of the initial support must be quickly
reversed. If those are not held, or quickly reversed, then
we could see a drop to test the 1149.00-1148.50 zone from
Tuesday. That is now a major support area, and will need to
be defended if the market is just having a healthy pullback.
Lately the drops have been quick to reverse, so if those
areas are tested, and not reversed, then the market is under
the weight of an internally poor underbelly and a sizable
selloff is underway.
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June 2010 SP futures resistance
symbols: emini = esm0 / big contract =spm0
1162.00-1163.00
1165.25-1165.50 **strong
1168.00-1168.50
June 2010 SP futures support
symbols: emini = esm0 / big contract =spm0
1158.00-1157.50 **key
1155.75-1155.00 **gap
1151.50-1151.00
1149.00-1148.50 **major
1145.50-1145.00
June 2010 Nasdaq futures resistance
symbols: emini = nqm0 / big contract = ndm0
1935.00-1936.00
1942.75-1943.75 **strong
1947.50-1948.50
June 2010 Nasdaq futures support
symbols: emini = nqm0 / big contract = ndm0
1929.25-1928.75 **key
1925.00-1924.50 **gap
1921.00-1920.25
1917.00-1916.00 **major
1912.50-1912.00
June 2010 Dow futures resistance
symbols: emini = ymm0
10673-10678
10703-10707 **strong
10727-10734
June 2010 Dow futures support
symbols: emini = ymm0
10647-10642 **key
10632-10627 **gap
10612-10608
10581-10578 **major
10559-10554
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---------------------------
Good Trading,
Mike Reed
Copyright (c) 2010 by TradeStalker.com, Ft Wayne, IN.
TradeStalker Updates may not be redistributed without
permission.
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PO Box 9783, Ft Wayne, IN, 46899
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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