TradeStalker's
R.B.I. Trader's Update
7 / 20 / 2009
(Published Since 1996)
...............................................
Dateline: 6:29 pm eastern time, 7/20/2009
The market opened higher on Monday, and after the ES made a
double top at 945.75 there was a pretty quick drop to the
updated support at the 927.50-927.00 zone. With a low at
937.25 on the ES, the market went into a grind higher and
reached 944.50 before pulling back. The ES dropped to 940,
just over the 939.75 level, and quickly reversed. That was
enough to start a bounce, and with a couple little shakeouts
along the way, the market went into a choppy grind higher
that took the ES up to 949.25 just before the close.
The market still has good upside momentum, and holding the
940.00-939.75 area on the ES keeps the melt-up action in
gear. That area is now key support, and really shouldn't
even be tested if the market is going higher from here. The
market has had a good underlying bid, with the quick
pullbacks all getting turned around and headed back to the
upside. The only bad thing is that after 9 straight up days
for the Nasdaq 100 and a 72 point gain over 6 days for the
SP500 cash, this move has gone pretty fast pretty fast. A
pullback should be due, and the late run-up into the close
might have been the hook that makes for a short term trading
top.
The moves into new high ground have tended to be sold the
first go around. If there is early strength, and the ES
stalls/reverses from around the 952.00-953.00 area, that
could make a double top of sorts, and a sell-off could
begin. On the other side of the coin, if the Monday highs
are not exceeded, and the initial support areas are not able
to hold, then a test of the 940.25-939.75 area should be
telling. That is the last round number that was resistance
and now support, and that is also where buyers came in on
Monday afternoon. If it is not defended, then things could
be changing short term. A drop back to the 933.00-932.25
area on the ES, and possibly quite a bit lower could be in
the cards.
On Tuesday get short if there is early strength, as the ES
should not exceed the 952-953 area if there is going to
finally be a decent pullback. A move over 950 that then goes
back down through 950 would be a decent entry. If that plays
out, and the initial support isn't held, a drop towards the
Monday afternoon lows needs to hold, otherwise it could be a
bad day for the market.
September 2009 SP futures resistance
symbols: emini = esu9 / big contract =spu9
949.25
952.00-953.00
957.50-958.00
September 2009 SP futures support
symbols: emini = esu9 / big contract =spu9
945.00-944.50
940.25-939.25
937.25-937.00
933.00-932.25
September 2009 Nasdaq futures resistance
symbols: emini = nqu9 / big contract = ndu9
1544.00
1547.75-1548.25
1554.00-1554.75
September 2009 Nasdaq futures support
symbols: emini = nqu9 / big contract = ndu9
1535.00-1534.50
1530.50-1529.75
1526.00-1525.50
1518.75-1508.00
September 2009 Dow futures resistance
symbols: emini = ymu9
8810
8841-8848
8878-8882
September 2009 Dow futures support
symbols: emini = ymu9
8778-8774
8736-8732
8702-8698
8658-8654
CLICK HERE to watch a brief video on how to
best utilize the RBI Updates in your own trading.
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
This publication's primary focus is trading the index
futures. However, you can also use my nightly updates to
trade the following ETF's (SPY), (QQQQ), (SDS), (QID),
(DIA), and (DOG)
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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