TradeStalker's
R.B.I. Trader's Update
1 / 29 / 2009
(Published Since 1996)
...............................................
Dateline: 6:45 pm eastern time, 1/29/2009
In the Wednesday night update I gave reasons to expect a
selloff. it was nice being in put options from Wednesday, as
the ES opened about 14 points lower on Thursday. The initial
drop was reversed from 850.50 on the ES, and then they
bounced back and made a little double top at 859.75 before
rolling over again. The ES bounced from 842.75 with about 2
hours left in trading, and they bounced back again. The move
failed just under the 60ema on the 5 minute chart and the
morning low at 850.50, and then dropped to the 840.50-840.00
support area and traded sideways into the close.
The market erased its overbought status on Thursday, however
it also erased all of the Wednesday gains as the SP500 lost
about 29 points on Thursday. Despite the carnage, the Vix
only jumped 7% and didn't show too much fear. Maybe that's
because many of the big down days have been reversed the
following day lately.
In any case, the market feels fairly comfortable trading
down at these levels. Also, Thursday was basically a trend-
down day and back to back trend days are uncommon. The
bounces probably will not stick, and the drops will likely
create reversals on Friday. Shorting the bounces as soon as
the upside momentum stalls out should continue to offer the
better odds trades. For now, the market in vulnerable unless
there is a break and hold over the initial resistance areas.
On the downside, the initial support around the Thursday
lows should be quickly reversed if broken. If the initial
support is broken, and the market can not quickly reverse,
then we might see some more pressure on the downside.
March 2009 SP futures resistance
symbols: emini = esh9 / big contract =sph9
850.00-850.50
859.75-861.25
866.00-866.50
872.50-873.00
876.00
879.50-880.25
March 2009 SP futures support
symbols: emini = esh9 / big contract =sph9
840.50-840.00
836.50-836.00
831.75-830.75
824.00-822.50
816.25-815.75
March 2009 Nasdaq futures resistance
symbols: emini = nqh9 / big contract = ndh9
1212.00-1212.75
1219.00-1220.50
1227.25-1228.00
1234.50-1235.00
1245.00
1249.25-1250.25
March 2009 Nasdaq futures support
symbols: emini = nqh9 / big contract = ndh9
1196.50-1195.50
1190.25-1188.75
1182.25-1181.75
1175.00-1174.25
1166.50-1165.50
March 2009 Dow futures resistance
symbols: emini = ymh9
8161-8166
8247-8254
8308-8314
8354-8360
8388
8421-8426
March 2009 Dow futures support
symbols: emini = ymh9
8080-8075
8028-8024
7975-7970
7924-7919
7892-7888
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Real Time subscribers can view these updates on
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http://www.tradestalker.com/members
---------------------------
Good Trading,
Mike Reed
Copyright (c) 2009 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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