TradeStalker's
R.B.I. Trader's Update
6 / 28 / 2009
(Published Since 1996)
...............................................
Dateline: 5:26 pm eastern time, 6/28/2009
On Friday we had an early bounce to short when the ES
fizzled at 916.25 and reversed about 15 minutes into the
trading day. The first decent pullback then held at 909.75,
just above the key 909.50-909.00 zone, before bouncing up to
914.50. That move fizzled and a drop to 908.50 was quickly
reversed, and the ES then bounced around in slow trading.
With about 90 minutes left in trading, the market started a
rally that took the ES to the 917.50-918.00 resistance area.
However, after tagging 918.25, the ES quickly reversed and
dropped back to 913.00 and settled under fair value.
The action on Friday was narrow range action at the top of a
trend, similar to a week ago. The internal gauges are short
term overbought, with my 3 day thrust at +.65 (+/- .50 is
overbought/oversold extreme) and the RBI Sell gate nearly
open. In addition to that, the Vix made a new low for the
year and gave 2 of 5 possible sell signals in my work. If
the Vix reverses to the upside from here, it would give a
couple more sell signals. When things set up like this, the
market normally gets hit with a decent sized selloff, or at
best has a tough time making much headway on the upside. The
only fly in the ointment as I see it is that we have end-of-
month and quarter, and a short week due to the July 4th
Holiday.
That said, the ES has a lid at the 917.50-918.25 area, and
if it is not cleared and held early on Monday then we could
see another bad day, or at least a decent pullback. If there
is early strength, and the ES fails to break and hold over
the initial resistance areas, then it would set up a
shorting opportunity. If the market gets over that area,
then we could see a run towards the 922.50-923.25 area. If
the market is weak, then the initial support will not hold
(the 1474.50-1473.75 area on the stronger NQ looks
especially key) and should turn into resistance if the
market breaks down to test or break the Friday lows.
September 2009 SP futures resistance
symbols: emini = esu9 / big contract =spu9
917.50-918.25
922.50-923.25
925.75-926.25
September 2009 SP futures support
symbols: emini = esu9 / big contract =spu9
913.25-912.75
909.00-908.50
905.50-905.00
899.50-898.50
892.50-891.50
September 2009 Nasdaq futures resistance
symbols: emini = nqu9 / big contract = ndu9
1481.50-1482.00
1489.00-1489.75
1492.50-1493.25
September 2009 Nasdaq futures support
symbols: emini = nqu9 / big contract = ndu9
1474.50-1473.75
1464.75-1463.75
1458.75-1458.00
1452.00-1451.00
September 2009 Dow futures resistance
symbols: emini = ymu9
8406-8412
8448-8453
8482-8487
September 2009 Dow futures support
symbols: emini = ymu9
8365-8362
8342-8337
8310-8306
8268-8263
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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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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
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is substantial. You can lose more than your original
investment. We are not Registered Investment Advisors or
Commodity Trading Advisors.
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