TradeStalker's
R.B.I. Trader's Update
5 / 05 / 2009
(Published Since 1996)
...............................................
Dateline: 5:34 pm eastern time, 5/05/2009
We had reasons to expect a weak market and wanted to short
early strength. The ES rejected the 904.50-905.00 resistance
zone twice, then it fell to 894.00 before reversing quickly.
That kept the market from rolling over, but a bounce back to
the 900.00 level turned into a lid. The ES backed off and
chopped to a lower low at 863.50 which quickly reversed
also. The bulls kept control and in the last hour buyers
took the ES up to 903.75 just before settlement.
The market continues to hold together. Right now it looks
like a top could be forming, but it will be a process and
take a day or two before things shape up. The trading range
for the ES was the narrowest since August 22, 2008 excluding
the day before and after last Christmas. Low volatility
usually leads to range expansion and, although its possible,
it's kind of hard to expect the market to kick in to another
melt-up type of move. At the moment, it looks like a move up
to the 921.00-921.50 area on the ES is the maximum upside
potential, while the downside has quite a bit more room if
there is something that shakes the market up a bit.
On Wednesday, look to short early strength if it
stalls/reverses in the first 40 minutes of trading. If that
occurs, then a pullback needs to hold the Tuesday lows. If
those are broken, and the market doesn't snap right back
again, then the topping process would likely be underway.
June 2009 SP futures resistance
symbols: emini = esm9 / big contract =spm9
904.50-905.00
910.75-912.00
916.50-917.00
921.00-921.50 **major**
June 2009 SP futures support
symbols: emini = esm9 / big contract =spm9
897.50
894.00-893.50 **key**
889.50-889.00
885.25-884.75
June 2009 Nasdaq futures resistance
symbols: emini = nqm9 / big contract = ndm9
1428.50-1429.25
1431.50-1432.50
1437.00-1438.50
1442.75-1443.50
June 2009 Nasdaq futures support
symbols: emini = nqm9 / big contract = ndm9
1418.50
1407.00-1406.25
1402.00-1400.50
1392.50-1391.50
June 2009 Dow futures resistance
symbols: emini = ymm9
8394-8399
8426-8429
8461-8465
8496-8503
June 2009 Dow futures support
symbols: emini = ymm9
8332
8314-8311
8262-8258
8227-8223
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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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