TradeStalker's
R.B.I. Trader's Update
5 / 11 / 2009
(Published Since 1996)
...............................................
Dateline: 6:03 pm eastern time, 5/141/2009
The market opened the week with gap down opens on Monday.
The ES opened down 12.50 points and kept falling until 20
minutes had passed, and from a low at 905.75 on the ES (and
1367.25 support on the NQ) the market bounced back 10.75
points on the ES up to 916.50. The move fizzled there and
the ES fell back to 908.00 by early afternoon. Buying came
in and took the market back towards the highs, but the ES
reversed just under the 915 level. In choppy action the ES
dipped to 910.50 and popped to 914.50 and then dropped to
match the 905.75 on the ES just before the close.
The market acted toppy late last week and the Monday selloff
could be the start of something that lasts a few days for a
change. If not, the upside will probably be limited and the
volatility should pick up. The ranges were narrow again on
Monday, and the volume was light, so after the early going
buyers pulled bids for the most part. It was not and kind of
urge to bail out by the bulls. The Vix gave 2 repeat sell
signals on Monday, while most of the other internal gauges
are backing away from short term overbought extremes.
The SP500 cash didn't close under 907 yet, so that keeps the
market from breaking down bigger picture. On Tuesday, if the
ES tests and reverses from the 903.25-902.50 area on the ES,
it could set up a decent bounce IF the market is going to
avoid another bad day. If the market drops early and then
bounces, but the move still can not break and hold over the
914.50-915.00 area, then the bounces will set up better
opportunities on the short side as the path of least
resistance should still be to the downside.
On Tuesday, look for early weakness that reverses from the
903.25-902.50 area on the ES to set up a trade on the long
side. If that plays out, beware that the first decent bounce
should set up a good shorting opportunity on a
failure/reversal from under that 914.50-915.00 area. If the
903.25-902.50 area on the ES isn't held, or quickly reversed
if broken, then the pressure could be on and a retreat back
towards the 880s is likely in the works.
June 2009 SP futures resistance
symbols: emini = esm9 / big contract =spm9
914.50-915.00
918.50-919.00
921.50-922.00
927.50-928.00
June 2009 SP futures support
symbols: emini = esm9 / big contract =spm9
905.75
903.25-902.50
898.25-897.50
894.00-893.50
889.50-889.00
June 2009 Nasdaq futures resistance
symbols: emini = nqm9 / big contract = ndm9
1409.50-1410.00
1415.50-1416.50
1421.00-1421.75
1428.00-1429.50
June 2009 Nasdaq futures support
symbols: emini = nqm9 / big contract = ndm9
1391.75
1387.00-1386.25
1376.50-1375.25
1368.50-1367.25
1362.50-1361.50
June 2009 Dow futures resistance
symbols: emini = ymm9
8445-8450
8491-8495
8517-8521
8552-8556
June 2009 Dow futures support
symbols: emini = ymm9
8369
8357-8354
8315-8311
8292-8288
8258-8252
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)
Good Trading,
Mike Reed
Copyright (c) 2009 by TradeStalker.com, Ft Wayne, IN.
TradeStalker Updates may not be redistributed without
permission.
www.TradeStalker.com
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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