TradeStalker's
R.B.I. Trader's Update
3 / 25 / 2010
(Published Since 1996)
...............................................
Dateline: 6:20 pm eastern time, 3/25/2010
We were shorting early strength, and then reversing and
getting long when the first pullback reversed. The gap up
open was sold as the ES dropped 5 points to 1167.50 before
turning up. That old resistance turned into support, and set
up a trend-up move to 1176.50 by early afternoon. The alert
to short under 1176 or a break of 1173 worked nicely. A 1-2-
3 top was made off of 1176.00 and then the market broke
lower. A bounce reversed at 171, just under new resistance,
and then went into a trend-down move of 16.25 points as the
1162-1161 area was broken just before stocks closed.
Thursday started with a gap up open, and then after the
contra open move down was over, the move up was feeding upon
itself in a melt-up type move. The failure at the 1176.50
new high on the ES and subsequent 16.25 point plunge into
the close puts the market in a position to make a bigger
break if the right pattern plays out.
As stated earlier in the week, the intermediate term
internal gauges are rolling over. The Wednesday and Thursday
pullbacks had something that was lacking on the upside - an
increase in volume. Should the market turn up from the
initial support areas early on Friday and struggle back
towards the 1171.00-1171.50 area on the ES and/or the
1963.50-1964.00 area on the NQ, and the move
stalls/reverses, then another drop similar to or bigger than
the Thursday drop could be underway.
On Friday look for early weakness that can reverse from the
1159.25-1158.50 area to give a bounce, but that first decent
bounce should set up a better shorting opportunity. Unless
the 1171.00-1171.50 area on the ES is exceeded, and not
quickly reversed, the market is vulnerable. If the market
gets hit hard and the selloff goes as far as the 1148.50-
1147.75 zone on the ES and not bounce strongly, then we have
more trouble ahead.
June 2010 SP futures resistance
symbols: emini = esm0 / big contract =spm0
1165.00-1165.75
1171.00-1171.50 **key
1176.00-1176.50
June 2010 SP futures support
symbols: emini = esm0 / big contract =spm0
1159.25-1158.50
1155.75-1155.00
1152.00-1151.50
1148.50-1147.75 **major
June 2010 Nasdaq futures resistance
symbols: emini = nqm0 / big contract = ndm0
1952.50-1953.00
1963.50-1964.00 **key
1972.75-1974.25
June 2010 Nasdaq futures support
symbols: emini = nqm0 / big contract = ndm0
1945.25-1144.50
1941.00-1940.50
1934.25-1933.50
1924.25-1922.25 **major
June 2010 Dow futures resistance
symbols: emini = ymm0
10831-10834
10858-10862
10889-10894
June 2010 Dow futures support
symbols: emini = ymm0
10772-10767
10728-10723
10697-10694
10638-10633
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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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