TradeStalker's
R.B.I. Trader's Update
5 / 6 / 2009
(Published Since 1996)
...............................................
Dateline: 6:21 pm eastern time, 5/6/2009
We were shorting early strength and a gap up open at 910.75-
912.00 resistance gave a great entry. The ES turned down
from 912.50 and steadily fell to a dynamic support zone
(60ema on 5 minute RTH chart) and that acted as support 4
times on Wednesday. The bounce from the 901.25 low fizzled
after reaching 911.00, and the ES pulled back to the 60ema
on the 5 minute chart for the 3rd time. The ES turned up and
the 912 resistance finally was broken around 2 pm and a run
up to the 916.50-917.00 resistance followed. The ES reached
917.25 and fell to 908.00, reversing from that 60ema on 5
minute chart one more time, and then rallied into the close.
The market continues to be very resilient, although it did
back off from what should be decent resistance up at these
multi-month highs. The Nasdaq 100 made a 38.2% rally off its
intraday low, and didn't end the day in new high ground. The
SP500 cash reached 920.28, and a 38.2% rally from the 667
low is 921.50. This is the last logical resistance as I see
it until getting back towards the 943-944 area on the SP500
cash, the January 6th top. Given that the market is very
overbought, and finally showed signs of tiring out, the ES
needs to break out over the 921.00-921.50 area, and not
quickly reverse. A quick reversal would be expected, but if
it isn't quickly reversed, then there could possibly be a
bit more piling on the buy side. So, expect the reversal but
keep a pretty tight stop on shorts entered up there as a
hold over 920 could bring in more buying.
That said, the market will be okay unless it breaks and
holds under the initial support areas. If that area is not
held, then the trends could be rolling over. Look for early
strength to set up a shorting opportunity, especially if
there is a slightly higher high that reverses from around
the 921 area on the ES. If that plays out, beware that the
first decent pullback should set up a buying opportunity IF
the initial support is broken. If it is, then shorting the
pops that stall/fizzle should offer the better opportunities
as a short term high could be in place.
June 2009 SP futures resistance
symbols: emini = esm9 / big contract =spm9
918.00
921.00-921.50 *major*
926.00-926.50
934.00-934.50
June 2009 SP futures support
symbols: emini = esm9 / big contract =spm9
908.50-908.00
902.25-901.25
898.25-897.50
894.00-893.50
889.50-889.00
June 2009 Nasdaq futures resistance
symbols: emini = nqm9 / big contract = ndm9
1431.00
1435.75-1437.00 *major*
1441.00-1442.00
June 2009 Nasdaq futures support
symbols: emini = nqm9 / big contract = ndm9
1412.50-1411.75
1407.00-1406.25
1399.50-1398.50
1392.50-1391.50
1387.00-1386.25
June 2009 Dow futures resistance
symbols: emini = ymm9
8479
8496-8503 *major*
8531-8536
June 2009 Dow futures support
symbols: emini = ymm9
8406-8401
8372-8369
8335-8332
8314-8311
8262-8258
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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.
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Past performance does not guarantee future performance.
The foregoing has been prepared solely for informational
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research and data believed reliable, but there is no
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We are not advocating trading futures. The prices and
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