TradeStalker's
R.B.I. Trader's Update
4 / 6 / 2009
(Published Since 1996)
...............................................
Dateline: 5:57 pm eastern time, 4/6/2009
A lot of caution flags were being waved after Friday's
action and the ES started the week by opening down 11 points
on Monday. The first decent bounce fizzled at 831.50, which
coincided with the 20 and 60 period ema's on the 5 minute
chart, and the ES dropped to test the 823.00-822.75 support
zone. The market bounced, but it failed at updated
resistance at 827 and the trend down action continued.
Shortly after noon the ES reached an 818.75 low, which was
just over the 818.00-817.50 support zone, and a choppy
uptrend got started. The 823 level was exceeded and the ES
chopped its way to up to 834.00 with just 5 minutes left in
stock trading. The ES pulled back a bit to settle under fair
value.
The ES is currently range-bound and a trip to the top of the
range *could* be in the cards. That is at the 842.50-843.00
area on the ES and it has been rejected twice now.
There are 2 scenarios that look to have equal odds at the
moment. . . First, IF there is a rally back to that 842.50-
843.00 area on the ES or slightly lower and then the market
turns back down, it would be setting the stage for a 1-2-3
top on the daily chart. A reversal from around 838 on the ES
could do the trick, so beware if that occurs. The other
scenario would occur if there is no sign of a reversal. A
push through the 842.50-843.00 area on the ES could
accelerate the move up towards the 847.75-848.00 area. If
that happens and there is no reversal, then the 861.65 area
on the SP500 cash is the last good resistance before the
875-877 zone. Somewhere up there, likely not further than
the 852.50-853.00 area, should then make a high for the
move. Another possibility is that the market drops hard
on Tuesday, which is possible if 818 on the ES isn't
defended.
On Tuesday look to short early strength if it fizzles and
reverses in the first 40 minutes, and especially if a
resistance zone is rejected. If that plays out, beware that
the first decent pullback should then set up a good buying
opportunity. The ES should stay over the 830 level if it's
going to remain strong. If that is reversed, then a deeper
drop will be in the cards before buyers step back to the
plate.
June 2009 SP futures resistance
symbols: emini = esm9 / big contract =spm9
834.00-834.50
842.50-843.00
847.75-848.00
852.50-853.00
861.65 {SP500 cash} **reversal/old breakdown level**
June 2009 SP futures support
symbols: emini = esm9 / big contract =spm9
830.50-829.50
822.25-821.75
818.50-817.50
810.25-809.50
June 2009 Nasdaq futures resistance
symbols: emini = nqm9 / big contract = ndm9
1318.00-1319.00
1324.50-1325.25
1329.75-1330.50
1338.75-1339.50
June 2009 Nasdaq futures support
symbols: emini = nqm9 / big contract = ndm9
1308.00-1307.75
1295.50-1295.00
1285.75-1284.50
1254.75-1254.00
June 2009 Dow futures resistance
symbols: emini = ymm9
7938-7982
7996-8001
8036-8040
8089-8093
June 2009 Dow futures support
symbols: emini = ymm9
7910-7906
7834-7830
7804-7799
7734-7725
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Good Trading,
Mike Reed
Copyright (c) 2009 by TradeStalker.com, Ft Wayne, IN.
TradeStalker Updates may not be redistributed without
permission.
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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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
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