Tuesday, May 26, 2009

TradeStalker's RBI Update 05/20/09

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TradeStalker's

R.B.I. Trader's Update

5 / 20 / 2009

(Published Since 1996)

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Dateline: 8:18 pm eastern time, 5/20/2009


Thanks to all of you who sent nice emails wishing me well.
It was very kind of you all, and certainly lifts the sprits.
This is a regular update tonight, and hopefully there will
be another on Thursday night. I am still unable to do
intraday updates (before 3 pm anyway) until next week.

It looks like the top came about 30 minutes and 8 ES points
higher than I thought on Wednesday. The ES opened higher and
broke/held the 914.50-915.00 resistance on the way to a
923.50 high. The ES rolled over and dropped to 907.00 by
early afternoon, and then bounced back to that 914.50-915.00
area again. The bounce reversed and the market sold off to
make its lows at the close.

The internal gauges are not looking good up here on the test
of the highs. The sentiment is too bullish and complacent,
and the Vix did give 3 of 5 sell signals from my work. The
close order 905 on the ES puts a chink in the bullish
pattern, and instead starts a possible 1-2-3 top from up
here.

So, it looks like a break/hold back over the 914.50-915.00
area is needed to avoid trouble on Thursday. A pop up to the
initial resistance that stalls/reverses would set up a very
good shorting opportunity. If there is drop back towards the
886.25-885.50 area and it isn't quickly reversed, then the
877.25-876.75 zone or lower is likely in the cards on this
leg down.



June 2009 SP futures resistance
symbols: emini = esm9 / big contract =spm9

906.50-907.50
914.50-915.00
918.25
923.00-924.00


June 2009 SP futures support
symbols: emini = esm9 / big contract =spm9

895.00-894.50
886.25-885.50
880.00-879.50
877.25-876.75 *key*
872.50-872.00


June 2009 Nasdaq futures resistance
symbols: emini = nqm9 / big contract = ndm9

1400.00-1400.50
1411.00-1411.75
1419.00
1422.50-1423.50


June 2009 Nasdaq futures support
symbols: emini = nqm9 / big contract = ndm9

1382.00-1381.00
1373.00-1372.50
1366.75-1366.00 *key*


June 2009 Dow futures resistance
symbols: emini = ymm9

8451-8458
8511-8514
8559
8576-8579


June 2009 Dow futures support
symbols: emini = ymm9

8368-8362
8274-8272
8238-8234
8211-8206 *key*


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http://www.tradestalker.com/members


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Good Trading,
Mike Reed

Copyright (c) 2009 by TradeStalker.com, Ft Wayne, IN.
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