TradeStalker's
R.B.I. Trader's Update
7 / 19 / 2009
(Published Since 1996)
...............................................
Dateline: 5:36 pm eastern time, 7/19/2009
The market had a good week, and the Nasdaq led the way with
its 8th straight up day on Friday. After the ES closed over
900 on Tuesday, the market gapped up big on Wednesday and by
Thursday afternoon the ES reached 940.75 before pulling
back. The Friday action was a 2 sided, narrow range day as
the averages chopped back and forth. The ES reached 938.75
before reversing, but the drop held at 932.75 and then the
market closed well to end the week.
The market had been very strong with good upside momentum.
The overbought status hasn't held the market back, which is
rare but a sign of a very strong market. Short term, the
market should be at/near a short term top. The market could
get volatile if things play out as it appears possible.
The ES traded in just a 7.75 point range on Friday, the
smallest range since a 7 point range on 5-30-2008. Low
volatility, or spinning its wheels it new high territory, is
usually reversed. On Monday the ES needs to stay over the
late Friday lows, or initial support, or the trends will
roll over short term.
On Monday the ES needs to get over the 940 area, and not
quickly reverse, to keep this melt-up going. If it does pop
through 940 and then reverse again, then a sharp drop could
begin. If there is a hold over the 940 level (like Thursday
afternoon's break/hold over 930) then a sprint towards the
952.50-953.25 is possible. IF that occurs, a reversal could
be very sharp when the move fizzles/reverses.
So, in the early going look for early strength that reverses
to set up a shorting opportunity. If that sets up, then the
first decent pullback would need to hold the initial support
areas to avoid rolling over. If the market opens lower
instead, and can reverse from the initial support areas, a
trade on the long side should set up. But don't overstay
your welcome if that occurs as another drop will be making
the 940 area a lid.
September 2009 SP futures resistance
symbols: emini = esu9 / big contract =spu9
940.00-940.75
943.50-944.50
952.50-953.25
September 2009 SP futures support
symbols: emini = esu9 / big contract =spu9
933.00-932.75
925.25-924.75
919.50-919.00
912.50-911.75
September 2009 Nasdaq futures resistance
symbols: emini = nqu9 / big contract = ndu9
1532.25-1533.00
1536.75-1537.25
1544.50-1545.00
September 2009 Nasdaq futures support
symbols: emini = nqu9 / big contract = ndu9
1518.75-1508.00
1508.50-1507.50
1497.25-1496.50
1492.50-1491.25
September 2009 Dow futures resistance
symbols: emini = ymu9
8704-8708
8738-8740
8782-8787
September 2009 Dow futures support
symbols: emini = ymu9
8658-8654
8557-8552
8491-8488
8452-8448
---------------------------
REMINDER:
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.
www.TradeStalker.com
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.
*************************************************
No comments:
Post a Comment