TradeStalker's
R.B.I. Trader's Update
3 / 22 / 2009
(Published Since 1996)
...............................................
Dateline: 5:17 pm eastern time, 3/22/2009
After a drop to 746.00 on the ES early in the week, the
market rallied strongly into Wednesday afternoon. The SP500
revisited the scene of the crime, where the February 17th
breakdown was triggered, and it coincided with a 50%
retracement and a falling 50 day moving average. With that
being too much to get through after a 20% rally off the low,
that marked a top that was sold again on Thursday's open.
After a poor day, a number of sell signals flashed for
Friday's trading, and we got just that. The ES made a double
top at the 785.00 initial resistance level, and it was a
trend down move to 761.50 with 2 hours to go in the trading
day. That was just 1 tick under the last listed support zone
at 762.00-761.75, and the ES bounced back to 771.75. The
move fizzled and failed and the ES went back down to test
the low at the 4 pm close for stocks.
The high and low were both at resistance and support areas
on Friday. The market is just 2 days off of what appears to
be a decent trading high, so the bounces should continue to
fail. The sentiment reached extremes not seen in more than a
year in the options market and the Vix giving 4 sell signals
in 2 days hasn't been reversed just yet. This move could
take the ES back towards the 749.00-748.50 zone on this leg
down. If that occurs, and the market can get turned back up,
then another decent rally could occur. If there is a selloff
to that area, and it isn't reversed, then the market will be
breaking back down. Odds would then favor a drop back to the
734-733 area, and possibly back under 720 before a reversal
occurs.
On Monday, if the ES breaks the 762.00-761.50 area and can
quickly reverse back up, then a decent trade could set up on
the long side. On the other side of the coin, a pop up open
that fizzles will offer a good shorting opportunity. After
the early going, it will take a break and hold over the
initial resistance zones to change the downside pace. If
that happens, there could be more upside but beware of a
reversal as the bounces are not sticking.
June 2009 SP futures resistance
symbols: emini = esm9 / big contract =spm9
772.50-773.25
779.50-780.25 **key**
784.50-785.25 **major Monday**
789.25-790.00
June 2009 SP futures support
symbols: emini = esm9 / big contract =spm9
762.00-761.50
758.00-757.50
753.00-752.50
749.00-748.50
June 2009 Nasdaq futures resistance
symbols: emini = nqm9 / big contract = ndm9
1194.25-1195.00
1204.25-1205.25 **key**
1213.50-1214.00 **major Monday**
1220.50-1222.00
June 2009 Nasdaq futures support
symbols: emini = nqm9 / big contract = ndm9
1178.00-1177.25
1172.75-1172.00
1166.50-1165.50
1161.75-1161.00
June 2009 Dow futures resistance
symbols: emini = ymm9
7288-7291
7375-7380 **key**
7402-7406 **major Monday**
7461-7464
June 2009 Dow futures support
symbols: emini = ymm9
7201-7197
7164-7158
7112-7107
7078-7074
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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.
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.
This publication's primary focus is trading the index
futures. However, you can also use my nightly updates to
trade the following ETF's (SPY), (QQQQ), (SDS), (QID),
(DIA), and (DOG
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