TradeStalker's
R.B.I. Trader's Update
6 / 21 / 2009
(Published Since 1996)
...............................................
Dateline: 5:36 pm eastern time, 6/21/2009
The market opened higher on Friday and rallied up to 923.00
on the ES, just under the 923.50-924.00 resistance zone, and
the move fizzled and reversed. A drop to 917.75 on the ES
occurred, then the move quickly reversed and then bounced
back to test the morning highs. The ES reached 922.75 and
stalled again, and then after being rejected a second time
the market broke to the downside. The pressure was basically
on until the ES reached the 911.00-910.50 support zone and
quickly reversed. Off of a 910.75 low, the ES bounced back
to 919.75 but then backed off in the last 30 minutes of
trading.
Since the breakdown through the bottom of the 10 day range,
the market has pretty much churned the last 3 days of the
week. There was a decent oversold rally from 899.25 to
923.00 on the ES, but not without tradable moves on the
short side. There were 8 drops of 5 or more points on the ES
on the way from that low to high. So, even if the market has
more upside, it will not be in a straight line. The Vix
dropped to its lowest close for the year, and if there is a
reversal back to the upside on the Vix, the market will be
under pressure. A move similar to the drop seen last week
would be possible.
In any case, the inability to hold gains is troublesome.
Also, given how deeply oversold the indicators were last
week, the market didn't explode to the upside. So this
churning may be a rest before the market gets hit with more
selling. We will see soon. There is a Fed release on
Tuesday, and the market will likely get out of this little
range early this week.
The ES traded between resistance and support on Friday. On
Monday, the initial support areas need to hold or quickly
reverse if broken to avoid a topping pattern. If that
support isn't defended, then the first decent bounce will
likely fail. If the Friday high areas are exceeded, and then
the move stalls out, beware of a tradable reversal. If they
are broken, and the move has enough gusto to hold on a
pullback, then the market could rally back towards the 930's
on this rebound.
September 2009 SP futures resistance
symbols: emini = esu9 / big contract =spu9
919.25-919.75
923.50-924.00
928.00-928.75
932.25-933.00
September 2009 SP futures support
symbols: emini = esu9 / big contract =spu9
911.00-910.50
907.50
904.50-903.50
898.00-897.50
September 2009 Nasdaq futures resistance
symbols: emini = nqu9 / big contract = ndu9
1471.00-1472.00
1476.50-1476.75
1481.25-1482.00
1488.00-1489.25
September 2009 Nasdaq futures support
symbols: emini = nqu9 / big contract = ndu9
1459.00-1457.50
1452.25
1446.50-1446.00
1438.50-1437.50
September 2009 Dow futures resistance
symbols: emini = ymu9
8506-8509
8558-8560
8607-8612
8648-8652
September 2009 Dow futures support
symbols: emini = ymu9
8440-8436
8402
8369-8364
8302-8297
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Real Time subscribers can view these updates on
the web at this site:
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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