TradeStalker's
R.B.I. Trader's Update
4 / 20 / 2009
(Published Since 1996)
...............................................
Dateline: 6:26 pm eastern time, 4/20/2009
The indicators were overbought and we had 2 Vix sell signals
coming into Monday, after the market made new recovery highs
last Friday. The pullback that was expected started at the
open on Monday, as the ES opened down about 16 points and
then broke lower after about 10 minutes of trading. It was a
choppy but trend down move from there, with the low on the
ES at 828.75 being made in the last 5 minutes of stock
trading.
On Friday the SP500 cash reached a high of 875.63, right in
the 875.01-877.86 area that marked the 1/28 and 2/09 highs.
So far, the result is the same as the SP500 dropped 43
points from Friday's high on a closing basis. With the
averages all closing down 3 percent or more, the internal
gauges backed out of extreme overbought territory. Also, the
Vix jumped over 15% on Monday. That's what happens when the
dips aren't aggressively bought.
After these big down days the market has been able to snap
back, and should give us at least 2-sided action on Tuesday.
If there is follow-through weakness, it should set up a good
trade on the long side if the market can reverse back up in
the first 20-40 minutes. It would be especially good if the
ES first drops to the 825.25-824.50 area and then reverses.
If the market opens higher, but turns down from around the
835.25-835.75 area, then the bears are still in charge and a
test of the Monday low, or lower, is likely.
June 2009 SP futures resistance
symbols: emini = esm9 / big contract =spm9
835.25-835.75
839.00-839.50
845.00-845.50
849.75-850.50
856.75-857.25
June 2009 SP futures support
symbols: emini = esm9 / big contract =spm9
829.00-828.75
825.25-824.50
819.00-818.50
812.00-811.50
June 2009 Nasdaq futures resistance
symbols: emini = nqm9 / big contract = ndm9
1316.75-1317.50
1321.25-1322.25
1327.75-1328.50
1333.25-1334.00
1338.25-1339.50
June 2009 Nasdaq futures support
symbols: emini = nqm9 / big contract = ndm9
1307.50-1307.00
1301.50-1300.50
1293.50-1292.50
June 2009 Dow futures resistance
symbols: emini = ymm9
7848-7852
7866-7870
7910-7916
7947-7951
8034-8037
June 2009 Dow futures support
symbols: emini = ymm9
7790-7785
7756-7752
7707-7703
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Real Time subscribers can view these updates on
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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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