TradeStalker's
R.B.I. Trader's Update
6 / 2 / 2009
(Published Since 1996)
...............................................
Dateline: 7:36 pm eastern time, 6/2/2009
Last night's bottom line stated:
"For now the ES needed to get over 950 and not
quickly reverse back down to get another squeeze
going. If that doesn't happen, odds favor a decent
pullback first."
There were a couple of opportunities to short just under
that level on Tuesday. The market dipped on the open on
Tuesday, and then turned and ran up to slightly higher highs
than Monday. The move fizzled and reversed from 949.00 on
the ES and 1494.50 on the NQ (its 1494.75-1496.00 resistance
zone) and then the market worked its way lower into early
afternoon. The pullback tested both the 939 updated support
on the ES and the 8700 level on the Dow cash around 12:30
pm, and then turned back up. The market chopped its way
higher into 3 pm, with the ES and Dow testing their highs
while the NQ lagged. Selling came in at the 947.00-947.75
area on the ES, and unable to break out, the tired and
overbought market gave in and sold off into the close.
The short term internal gauges are still overbought, and the
upside is losing momentum after four days of rally. The
rejection of the 948-949 area on the ES and subsequent drop
was the first bearish price action in awhile. Also, the
sentiment gauges are getting overly bullish, and as a
contrary indicator that's usually not good. The weight of
the evidence tells me there is more downside than upside
potential, short term. A test or break of the 932.50-932.00
area on the ES could be in the cards short term. It will
still take a solid break and hold over the 950 level to get
another push higher and nullify this outlook. A pop over 950
that reverses back down through 950 would still trigger a
shorting opportunity, should that occur.
So, look for a shorting opportunity if there is early
strength and the move stalls/reverses from under the 947.00-
947.75 area on the ES and/or 1485.00-1486.00 area on the NQ.
If that plays out, the first decent pullback would need to
hold the initial support areas, along with 8700 on the Dow
cash, in order to get a decent bounce going. If those areas
are not defended, then the 932.50-932.00 area on the ES, and
possibly lower, is likely in the cards before the market
gets itself turned back around.
June 2009 SP futures resistance
symbols: emini = esm9 / big contract =spm9
947.00-947.75
950.25-952.00
955.25-956.50
June 2009 SP futures support
symbols: emini = esm9 / big contract =spm9
939.50-939.00
932.50-932.00
927.75-927.00
918.00-917.50
911.50-910.50
June 2009 Nasdaq futures resistance
symbols: emini = nqm9 / big contract = ndm9
1485.00-1486.00
1494.75-1496.00
1501.75-1504.00
June 2009 Nasdaq futures support
symbols: emini = nqm9 / big contract = ndm9
1472.50-1472.00
1462.75-1461.50
1443.50-1442.75
1435.00-1433.75
1425.00-1423.50
June 2009 Dow futures resistance
symbols: emini = ymm9
8759-8764
8793-8798
8835-8839
June 2009 Dow futures support
symbols: emini = ymm9
8694-8692
8631-8627
8556-8551
8528-8524
8417-8413
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Good Trading,
Mike Reed
Copyright (c) 2009 by TradeStalker.com, Ft Wayne, IN.
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