TradeStalker's
R.B.I. Trader's Update
3 / 21 / 2010
(Published Since 1996)
...............................................
Dateline: 5:26 pm eastern time, 3/21/2010
Last Thursday night I stated "if there is early strength it
would be a gift for an entry on the short side." The ES
gapped up on Friday's open, then reversed from 1165.00
(right at the 1165.25-1165.50 zone) and immediately headed
lower. That gap open at resistance was a great reward/ risk
entry on the short side, and then after breaking the key
1158.00-1157.50 support, that area turned into resistance on
a bounce. From there it was a trend down move as the ES
reached 1152.00 around 11:15 am. The market quieted down in
thin trading, with the ES bouncing between 1152.50 and
1156.00 going into the last hour. A drop to new lows for the
day occurred in the last hour, and once again the market was
able to spring right back up to close in an uptrend.
With less than 25 minutes left in stock trading on Friday,
the market was on the verge of ending on a bearish note.
However, either quarterly expiration imbalance or a lot
looking at last Tuesday's Fed release low area as a buy zone
stopped the drop and started a run from 1150.25 up to
1156.75 by the close. We'll see if that is sustainable early
in the week. All of the short term gauges are in neutral
ground now. The Vix reversed and closed higher on the day,
but not over the 17.23 level that looks important there. It
did, however, give 3 of a possible 5 different sell signals
at Friday's close.
It looks like the market could go range bound, though the
upside will likely have a hard time holding on to its gains.
If there is early strength on Monday, it should set up a
shorting opportunity as soon as the upside stalls out and
begins to reverse. A pop that reverses from the 1157.25-
1158.25 area means the market is still weak and the initial
support, at least, will be tested. If the Friday lows are
retested and can hold, then another decent bounce can occur.
However, if the 1149.00-1148.50 area is broken and the
market doesn't make a fast U-Turn similar to late Friday
then the downside could gather a bit of steam.
June 2010 SP futures resistance
symbols: emini = esm0 / big contract =spm0
1157.25-1158.25
1162.00-1163.00
1165.25-1165.50
1168.00-1168.50
June 2010 SP futures support
symbols: emini = esm0 / big contract =spm0
1154.00-1153.50
1150.25
1149.00-1148.50 **major
1145.50-1145.00
June 2010 Nasdaq futures resistance
symbols: emini = nqm0 / big contract = ndm0
1934.50-1935.50
1939.50-1940.25
1947.50-1948.00
1951.50-1952.50
June 2010 Nasdaq futures support
symbols: emini = nqm0 / big contract = ndm0
1927.50-1927.00
1922.25
1917.00-1916.00 **major
1912.50-1912.00
June 2010 Dow futures resistance
symbols: emini = ymm0
10696-10702
10722-10727
10753-10757
10780-10784
June 2010 Dow futures support
symbols: emini = ymm0
10662-10658
10632
10624-10619 **major
10581-10578
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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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