TradeStalker's
R.B.I. Trader's Update
2 / 2 / 2009
(Published Since 1996)
...............................................
Dateline: 6:24 pm eastern time, 2/2/2009
The market gapped down on Monday, then after trading in a
range for about 30 minutes, the market reversed to the
upside. It was two-sided action with choppy trends in both
directions, but the ES found the 828.00-828.50 resistance
area (and 8000 on the Dow cash) too tough to break. A double
top just under that zone occurred in the last hour and the
market backed off into the close.
The market had decent swings both ways on Monday. These were
the swings of 4+ points on the ES on Monday:
808.75
821.75 +13.00
814.00 -7.75
827.75 +13.75
812.75 -15.00
827.50 +14.75
820.00 -7.50
The market just cannot hold on to its gains, and on Tuesday
we should see action similar to what occurred on Monday. The
key test on the upside, if the market can get up there
again, will likely be at the 827.75-828.50 resistance area
on the ES. The market is vulnerable unless/until that
resistance is broken, along with 8000 on the Dow cash. If
the bulls can overtake those obstacles and not give it back,
then a decent run towards the 837.50-838.00 area could be in
the cards before running into trouble again.
The key test on the downside would occur on a drop back to
the 812.75-812.00 support area. If the market slides back to
that area and it isn't reversed, then the 809.50-808.50 area
will most likely become a magnet. If that 808.50 level isn't
quickly reversed, then a bit of panic selling could open the
door for a drop towards the 801.50-800.50 area on the ES
again. If the market gets down there again, there will need
to be a reversal with some vigor beginning soon thereafter.
Now, if that 800 level is broken and the ES cannot quickly
reverse back up through 800, then we could head back towards
the low 790's on this leg down. However, if the ES breaks
800.00 and then reverses back up through that 800 level, it
would be a good time to begin scaling into long positions on
the SP500 futures or proxies. If that setup occurs, the
reward/risk should be pretty good for an oversold bounce
unless the market is somehow crashing from out of the
basement.
March 2009 SP futures resistance
symbols: emini = esh9 / big contract =sph9
827.75-828.50
837.50-838.00
847.50-848.25
850.00-850.50
859.75-861.25
March 2009 SP futures support
symbols: emini = esh9 / big contract =sph9
816.50
812.75-812.00
809.50-808.50
801.50-800.50
794.00-792.50
March 2009 Nasdaq futures resistance
symbols: emini = nqh9 / big contract = ndh9
1201.50-1202.50
1212.75-1214.25
1225.75-1227.25
1230.75-1231.75
1240.50-1242.50
March 2009 Nasdaq futures support
symbols: emini = nqh9 / big contract = ndh9
1177.75-1176.50
1172.50-1171.75
1166.50-1165.50
1154.00-1152.50
March 2009 Dow futures resistance
symbols: emini = ymh9
7939-7942
8057-8062
8141-8147
8161-8166
8247-8254
March 2009 Dow futures support
symbols: emini = ymh9
7817-7813
7798-7794
7772-7767
7738-7731
---------------------------
REMINDER:
Real Time subscribers can view these updates on
the web at this site:
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.
www.TradeStalker.com
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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