TradeStalker's
R.B.I. Trader's Update
3 / 11 / 2009
(Published Since 1996)
...............................................
Dateline: 6:46 pm eastern time, 3/11/2009
The market popped up higher on Wednesday and the ES sprinted
to the 732.50-734.00 resistance zone and the move fizzled
and reversed. A drop to the updated 718-717 zone was
reversed and the ES popped up to 723.25 twice. That was
under the updated 725.50 level and the ES dropped 10 points
to 713.25 and then turned back up. A run up to 728.00 didn't
stick and with the RBI Oscillator in sell mode, the ES
dropped 8.50 points into the close.
First off, on Thursday the futures roll over to the June
contracts. The new root symbol is M. For example, the symbol
for the June ES is now ES M9.
The market gave us the two-sided action that was the best
case for the bulls on Wednesday. The rejection of the
732.50-734.00 resistance zone and subsequent drop did little
to scare the call buyers, as the sentiment is getting overly
bullish. The Vix gave 1 sell signal as it dropped to a spot
seen on 2/13 and 2/26, both preceded large drops.
On Thursday we get the Retail Sales before the open and that
might set the early tone for the market. If we are going to
get the up-down-up type of move to another short term top,
then it needs to occur soon. If there is a decent sized drop
and the market can then get turned around and rally nicely
towards the Wednesday highs (or exceeds them), then a
reversal would start a good sized drop. If we get that type
of pattern on Thursday, it should set up a good shorting
opportunity for a pullback, and likely another sharp
pullback.
So, look for a decent rally to fizzle out and/or reverse for
a good shorting opportunity on Thursday. On the other side
of the coin, if there is early weakness that can hold and
reverse from above the 710.25-709.50 area on the JUNE ES
futures, then one more good rally could occur before the
market gets turned back and sells off pretty hard. If this
occurs, don't get married to any longs at this juncture as
the reward/risk favors the short side at the moment. If that
710.25-709.50 area doesn't hold, then a test of the 699.50-
699.00 area on the ES is likely on this leg down.
June 2009 SP futures resistance
symbols: emini = esm9 / big contract =spm9
724.50-725.00
729.50-731.00
735.00
738.50-739.00
June 2009 SP futures support
symbols: emini = esm9 / big contract =spm9
710.25-709.50
704.00-703.50
699.50-699.00
696.50-695.75
689.50-688.50 **major**
June 2009 Nasdaq futures resistance
symbols: emini = nqm9 / big contract = ndm9
1135.00-1135.75
1139.75-1040.75
1143.75
1149.50-1150.25
June 2009 Nasdaq futures support
symbols: emini = nqm9 / big contract = ndm9
1114.25-1113.50
1106.00-1105.50
1096.00-1095.50
1087.50-1086.50
June 2009 Dow futures resistance
symbols: emini = ymm9
6929-6954
6959-6965
7004
7031-7036
June 2009 Dow futures support
symbols: emini = ymm9
6870-6864
6806-6803
6738-6734
6712-6708
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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.
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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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