TradeStalker's
R.B.I. Trader's Update
5 / 7 / 2009
(Published Since 1996)
...............................................
Dateline: 6:28 pm eastern time, 5/7/2009
We were shorting early strength again on Thursday and like
yesterday there was a gap up open at resistance to "fade".
The ES gapped up to the 926.00-926.50 zone and a reversal
from 926.75 made a nice early trade by dropping 20 points in
just over an hour. The lunch-time bounce didn't stick and
with our focus on the short side, the rollover from 912.75
started another wave of selling. The 898.25-897.50 support
was reached and the ES bounced 10 points from the 898.00
low.
The last 2 days the market gapped up to new highs for the
move and both moves were sold. That action might be a sign
of things changing. The sentiment shifted from overly
bullish to more cautious on Thursday. In addition, the
reversal on the Vix gave 3 of 5 possible sell signals in my
work, after giving one of the 3 at Wednesday's close.
In any case, we get the Employment data on Friday before the
open. The market is still vulnerable, but after dropping
about 29 points off of the Thursday morning high AND holding
at a pretty important support area, there might be another
run-up before the market finds a top. If the ES now rallies
to a lower high and then reverses, it could set up a bigger
picture 1-2-3 topping pattern.
That said, if the Employment numbers (or revisions) are not
good and the market gets smacked, we will likely get some
two-sided action on Friday. On Thursday the ES had an
outside day, reversing from both a resistance area on the
top and a support zone on the bottom. Look for an over-
reaction, especially one on the downside, to be reversed in
the early going. After that, beware that a rally will likely
have trouble holding, especially if there is a move that
fails under the 917-918 zone. A Friday close under the
898.00 level would be a negative, and lend more credence
that a topping pattern is forming.
June 2009 SP futures resistance
symbols: emini = esm9 / big contract =spm9
908.25
913.75-914.50
917.25-917.75
921.00-921.50
926.50-927.00
June 2009 SP futures support
symbols: emini = esm9 / big contract =spm9
898.25-897.50
894.00-893.50
889.50-889.00
885.25-884.75
June 2009 Nasdaq futures resistance
symbols: emini = nqm9 / big contract = ndm9
1395.00
1402.00-1403.00
1406.75-1408.25
1414.50-1416.00
1424.00-1425.75
June 2009 Nasdaq futures support
symbols: emini = nqm9 / big contract = ndm9
1376.50-1375.25
1372.50-1371.50
1367.00-1366.25
1359.50-1358.50
June 2009 Dow futures resistance
symbols: emini = ymm9
8396
8425-8429
8477-8481
8496-8503
8536-8540
June 2009 Dow futures support
symbols: emini = ymm9
8315-8311
8292-8288
8258-8252
8197-8193
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Good Trading,
Mike Reed
Copyright (c) 2009 by TradeStalker.com, Ft Wayne, IN.
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