TradeStalker's
R.B.I. Trader's Update
5 / 14 / 2009
(Published Since 1996)
...............................................
Dateline: 6:19 pm eastern time, 5/14/2009
The market opened higher on Thursday but the strength was
sold as the ES dropped from 887.50 to 880.50 in the first 30
minutes of trading. The initial support areas held and after
reversing the market got in a buying mood and took the ES up
to the 894.00 level. The move fizzled and the market backed
off into early afternoon. The 888 level was reversed around
1 pm and the ES rallied to 896.75 before fizzling. A drop
back to test that 888 area held but the market still closed
on a down-swing.
The ES made a base at the 880.50-880.00 area on Wednesday
and Thursday morning, and that gave a good bounce. However,
with the market giving us the two-sided action expected on
Thursday, the inability for a rally to stick despite being
short term oversold is not a good thing for the market. The
Dow, SP and Nasdaq cash and futures all made slightly higher
highs than on Wednesday, then promptly turned back down. In
addition, the sentiment seems very complacent up here,
despite the market reversing late in the day.
On Friday the downside should set up the better
opportunities as it looks like there is unfinished business
on the downside. The initial resistance at the 893.50-894.00
area shouldn't be exceeded (and held, not a quick reversal)
if the market is going to be weak. If the market pops up
there on the open and stalls/reverses in the early going, it
would set up a good shorting opportunity for another decent
sized move to the downside.
On the downside, if the initial support is broken, then the
Thursday high will likely not be seen and a move back
towards that 880.75-880.00 area would be a key test of the
market's mood short term. If there is not a quick reversal
back up through the 880.00-800.50 area if it's broken, then
selling pressure could pick up steam. In order to avoid
bigger picture damage, holding the 870 area on the SP500
cash, or around the 868.25-867.50 zone on the ES would be
necessary if there is a hard selloff on Friday. If it
doesn't, then the ES probably will have a date with the old
852-850 area on this leg down.
June 2009 SP futures resistance
symbols: emini = esm9 / big contract =spm9
893.50-894.00
896.50-897.00
902.50-903.25
907.00
911.50-912.25
914.50-915.00
June 2009 SP futures support
symbols: emini = esm9 / big contract =spm9
888.50-888.00
880.75-880.00
877.50-877.00
873.00-872.50
868.25-867.50
June 2009 Nasdaq futures resistance
symbols: emini = nqm9 / big contract = ndm9
1362.50-1364.00
1368.00-1369.00
1376.75-1378.50
1384.50
1391.50-1392.50
1395.50-1396.00
June 2009 Nasdaq futures support
symbols: emini = nqm9 / big contract = ndm9
1351.00-1350.50
1343.75-1343.00
1339.00-1338.25
1330.50-1329.75
1324.75-1322.75
June 2009 Dow futures resistance
symbols: emini = ymm9
8325-8327
8345-8349
8403-8407
8445
8481-8486
8504-8509
June 2009 Dow futures support
symbols: emini = ymm9
8283-8279
8250-8245
8220-8216
8188-8183
8141-8137
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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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