TradeStalker's
R.B.I. Trader's Update
5 / 10 / 2009
(Published Since 1996)
...............................................
Dateline: 4:02 pm eastern time, 5/10/2009
The market started the week on a soft note, but the market
rallied back to new highs for the move on Wednesday and
Friday. The market had gap opens almost every day, and on
Friday the upside stalled and reversed about 20 minutes into
trading. A drop from 923.75 to 909.75 was over about an hour
into the trading day, and then a trend up grind followed.
After getting through 923 on the ES, a sprint to the 927-928
zone occurred but the move was sold into. A pullback to
920.50 occurred and then the market firmed into the close.
The Nasdaq 100 didn't keep up with the blue chips to end the
week, but the SP500 and Dow made new highs for this leg up.
The market has been surprisingly resilient. However, with
the ES closing up 17.75 points while the NQ closed down 5.00
points on Friday, that divergence might be telling. This is
one of the strongest and longest rallies since something
similar happened in 2001. If there is going to be a sizable
correction, or break down of this current rally, it looks
like the SP500 cash needs to close under 907. The market
could be topping out up here, however unless/until there is
a close back under 907, then a drop is just a pullback in an
uptrend.
On Monday look to short early strength if it stalls/reverses
in the first 20 to 40 minutes of trading. If that plays out,
then it looks like the bulls need to hold the 918.50-918.00
area on the ES, or quickly reverse if that is broken. If it
doesn't hold, then the bounces will likely make good
shorting opportunities down towards the 910.50-909.75 area.
If the market falls much further than that, then it will be
in danger of a bigger picture top. If the market opens lower
on Monday instead, beware of a reversal back up to trade in
the early going. That bounce should fail around the Friday
highs if there is going to be a pullback. If the move
fizzles after making a higher high than on Friday, then it
should offer a good shorting opportunity.
June 2009 SP futures resistance
symbols: emini = esm9 / big contract =spm9
927.50-928.00
931.50-932.00
937.75-938.25
942.50-943.50
June 2009 SP futures support
symbols: emini = esm9 / big contract =spm9
918.50-918.00
910.50-909.75
908.00
903.25-902.50
898.25-897.50
June 2009 Nasdaq futures resistance
symbols: emini = nqm9 / big contract = ndm9
1401.00-1402.00
1407.50-1408.25
1415.50-1416.50
June 2009 Nasdaq futures support
symbols: emini = nqm9 / big contract = ndm9
1385.25-1384.50
1375.75-1375.00
1372.25
1367.00-1366.25
1359.50-1358.50
June 2009 Dow futures resistance
symbols: emini = ymm9
8552-8556
8589-8594
8639-8643
June 2009 Dow futures support
symbols: emini = ymm9
8474-8470
8418-8413
8396
8357-8354
8315-8311
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REMINDER:
Real Time subscribers can view these updates on
the web at this site:
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.
This publication's primary focus is trading the index
futures. However, you can also use my nightly updates to
trade the following ETF's (SPY), (QQQQ), (SDS), (QID),
(DIA), and (DOG)
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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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