TradeStalker's
R.B.I. Trader's Update
4 / 16 / 2009
(Published Since 1996)
...............................................
Dateline: 6:24 pm eastern time, 4/16/2009
The gap up open on Thursday reversed from just under the
855.50-856.00 resistance zone on the ES and right in the
1334.75-1336.00 resistance on the NQ, and the market pulled
back. The NQ bounced back to 1335.25 while the ES lagged,
and then a second wave of selling hit the market. The ES
dropped to 843.25, which was a tick above initial support,
and reversed and then a grind higher took the ES back to
854.75. The market pulled back, but the ES held the 849.00
support level and turned back up. After getting through the
855 level, buying and short covering started a buying frenzy
that took the ES to 867.00. The move was parabolic and with
20 minutes left, profit taking sent the ES to 858.50 before
it firmed into the close.
The internal gauges are very overbought and there is a very
complacent mood to the market at the moment. After making
across the board new recovery highs, the market has been
pulling back. The market should have some difficulty making
headway, and a selloff is good odds from up here. If the
market gets back to the Thursday highs and fizzles, it's a
short with a tight stop. Given the Thursday action, both the
bulls and the bears would probably like to see that zone
tested right now. However, if Thursday's highs are cut
through without a problem, then the last good overhead
resistance up here is at the 875.01-877.86 area on the SP500
cash, which was a double top on 1/28 and 2/09 just before
the drop to 667 started. So, that is what the bulls are up
against. On the down side, nothing bad happens on Friday
unless the 849.25-849.00 is tested and not defended.
On Friday, early weakness that can turn back up in the first
20 minutes is a buying opportunity. If that plays out, look
for a shorting opportunity if the upside fizzles and/or
reverses. It could be bad news if 849 isn't held.
June 2009 SP futures resistance
symbols: emini = esm9 / big contract =spm9
866.50-867.00
875.01-877.86 {1/28-2/09 highs on SP500 Cash}
881.50-882.00
June 2009 SP futures support
symbols: emini = esm9 / big contract =spm9
855.00-854.50
849.25-849.00 **key**
843.50-843.00
June 2009 Nasdaq futures resistance
symbols: emini = nqm9 / big contract = ndm9
1357.75-1358.25
1379.75-1381.50
June 2009 Nasdaq futures support
symbols: emini = nqm9 / big contract = ndm9
1339.75-1338.50
1334.00-1332.50 **key**
1320.50-1319.75
June 2009 Dow futures resistance
symbols: emini = ymm9
8112-8119
8237-8242
June 2009 Dow futures support
symbols: emini = ymm9
8013-8008
7957-7954 **key**
7909-7905
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Good Trading,
Mike Reed
Copyright (c) 2009 by TradeStalker.com, Ft Wayne, IN.
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permission.
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research and data believed reliable, but there is no
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