TradeStalker's
R.B.I. Trader's Update
6 / 17 / 2009
(Published Since 1996)
...............................................
Dateline: 6:30 pm eastern time, 6/17/2009
The market opened flat on Wednesday and then the ES popped
up and reversed from 909.25 in the first 10 minutes and
reversed. A bounce off of 902.50 support failed at 907.50
and the downside resumed. After going under and then back up
through the 900 level, buying came in and the market worked
its way higher into the afternoon. The ES stopped, stalled,
then reversed from the 913.75-914.00 resistance zone. The
market then stair-stepped its way lower to close on a down
note.
The daily overbought/oversold indicators are now at short
term extremes. The market isn't acting great, but when the
market gets in this position it normally sets the stage for
a rally. On the times I get these extreme readings and the
market doesn't rally within a day or 2 (at the most,
normally sooner), it means the market is very weak and being
oversold simply doesn't matter. The way it looks after the
Wednesday action, a 2 sided trading day may be the best the
market can muster on Thursday unless there is a spark to
light the oversold fumes.
On Thursday there is the Initial Claims number before the
open, and then the Leading Indicators and Philly Fed release
30 minutes into the trading day. If there is early strength,
it will likely set up another good short under the initial
resistance levels. On the downside, it looks like a test of
the Wednesday lows would need to quickly reverse, and stay
over the 900 level on the ES to get a decent bounce to trade
from the long side. If the ES cannot reverse and stay over
that 900 level, then a drop towards the 892.50-891.50 is
likely in the cards. The major support, should the market
get hit with another hard selloff, is down at the 877.50-
875.50 area on the ES. That is a transition area and if that
area is tested, the market would need to reverse and not
look back to avoid a bigger break-down.
September 2009 SP futures resistance
symbols: emini = esu9 / big contract =spu9
909.00-909.50
913.75-914.00
918.00-918.75
923.50-924.00
September 2009 SP futures support
symbols: emini = esu9 / big contract =spu9
905.00-904.50
898.00-897.50
892.50-891.50
884.50-884.00
881.00-879.00 {SP500 Cash}
877.50-875.50
September 2009 Nasdaq futures resistance
symbols: emini = nqu9 / big contract = ndu9
1459.75-1461.00
1469.50-1470.00
1475.50-1476.00
1482.50-1483.25
September 2009 Nasdaq futures support
symbols: emini = nqu9 / big contract = ndu9
1452.50-1451.50
1438.50-1437.50
1430.50-1428.50
September 2009 Dow futures resistance
symbols: emini = ymu9
8473-8478
8504-8509
8541-8547
8583-8589
September 2009 Dow futures support
symbols: emini = ymu9
8435-8430
8402-8397
8351-8346
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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
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