TradeStalker's
R.B.I. Trader's Update
5 / 4 / 2009
(Published Since 1996)
...............................................
Dateline: 6:23 pm eastern time, 5/4/2009
The market had a gap-and-go open on Monday. The ES opened
about 5 points higher and kept on going until getting to
896.00 by around 11 am. The move stalled out and the market
pulled back but after reaching 889.00, the ES firmed back up
and a choppy grind higher began. The ES rejected the 898
level several times, but the pullbacks were shallow and that
level was blown through with 15 minutes left in stock
trading. The ES ran up to a 904.75 high as stocks closed on
their highs for the day.
The moon-shot on Monday put the market in a very overbought
status short term. The RBI Oscillator reached sell territory
on Monday, and the 3 day thrust is over +.50. When this
combo gets to extremes together, the market usually has
trouble making headway on the upside and more often than not
the market sells off. The only thing missing to make this a
high odds "fade" is no Vix sell signals.
In any case, there is a lot on the economic calendar at the
end of the week. The SP500 cash will have rallied 38.2%
intraday if it reaches 920.07, and 921.50 on the ES. The
levels are 1437.85 on the Nasdaq 100 cash and 1437.50 on the
NQ. That is possible if there is good follow through after
the early action on Tuesday.
On Tuesday we get the ISM Services 30
minutes into the trading day. Look to short early strength
as soon as the upside fizzles/reverses, especially if there
is a higher open that turns in the first 15-30 minutes on
Tuesday. If the market obliges and there is a decent
pullback early, then it should hold around the 895.50-895.00
area on the ES. As long as a pullback holds around that
area, or quickly reverses if broken by much, then the trends
will be rolling over.
June 2009 SP futures resistance
symbols: emini = esm9 / big contract =spm9
904.50-905.00
910.75-912.00
916.50-917.00
June 2009 SP futures support
symbols: emini = esm9 / big contract =spm9
895.50-895.00
889.50-889.00
885.25-884.75
878.25-877.50
June 2009 Nasdaq futures resistance
symbols: emini = nqm9 / big contract = ndm9
1425.75-1427.00
1431.50-1432.50
1437.00-1438.50
June 2009 Nasdaq futures support
symbols: emini = nqm9 / big contract = ndm9
1417.00-1416.50
1412.50-1412.25
1407.75-1407.00
1402.00-1400.50
June 2009 Dow futures resistance
symbols: emini = ymm9
8383-8387
8426-8429
8461-8465
June 2009 Dow futures support
symbols: emini = ymm9
8318-8312
8302-8299
8262-8258
8192-8184
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REMINDER:
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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