TradeStalker's
R.B.I. Trader's Update
8 / 30 / 2009
(Published Since 1996)
...............................................
Dateline: 5:26 pm eastern time, 8/30/2009
On Thursday night I wrote:
"On Friday look for early strength to be sold as
soon as the upside stalls, especially if that
occurs in the first 20-40 minutes of trading and
the ES runs up to test the 1038 area."
The ES gapped up, reached 1038.75, then reversed. A trend-
down move lasted until just after noon when the ES turned up
from 1022.00. A pop to 1025.00 failed, then the ES pulled
back and reversed from a higher low at 1023.00. That made a
1-2-3 bottom pattern, and the ES rallied to 1028.75. A
pullback held the 1025 pivotal area, and then the ES ran up
to 1029.75 and stalled. That set up one more test of the
1025 area on the ES and 9520 on the Dow cash, then they
bounced back up into the close.
The SP500 cash has closed between 1025.57 and 1030.98 for 6
days in a row, and should begin to move away from that area
soon. The daily indicators are still in neutral, and the Vix
didn't stray too far away from the 25 level all week.
Normally when volatility shrinks at the top of a move, it
sets up a reversal. With a couple of sizable drops and a
couple of nice rallies at the end of last week, the market
should soon make a break and stick.
On Friday afternoon the market held the 1025 level on the ES
and also the 9520 level on the Dow cash. As long as those
are defended, nothing bad happens and a move back towards
the double top at the 1038-1039 area on the ES is possible.
If those levels are broken, then the market would be rolling
back over. If there is a sharp drop from under the 1030
level, then the 1014.75-1014.00 area could be broken by a
bit before the move either reverses or accelerates.
September 2009 SP futures resistance
symbols: emini = esu9 / big contract =spu9
1029.25-1030.00
1032.50-1033.25
1038.25-1038.75
1043.00-1043.50
September 2009 SP futures support
symbols: emini = esu9 / big contract =spu9
1025.50-1025.00
1022.00
1020.75-1020.25
1017.50-1017.00
1014.75-1014.00
September 2009 Nasdaq futures resistance
symbols: emini = nqu9 / big contract = ndu9
1647.25-1648.50
1655.50-1656.25
1662.00-1662.50
1668.50-1669.25
September 2009 Nasdaq futures support
symbols: emini = nqu9 / big contract = ndu9
1637.75-1636.75
1631.50
1627.25-1626.50
1622.50-1621.75
1618.50-1617.75
September 2009 Dow futures resistance
symbols: emini = ymu9
9547-9551
9574-9577
9628-9633
9689-9693
September 2009 Dow futures support
symbols: emini = ymu9
9513-9508
9485
9475-9472
9448-9443
9420-9416
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Good Trading,
Mike Reed
Copyright (c) 2009 by TradeStalker.com, Ft Wayne, IN.
TradeStalker Updates may not be redistributed without
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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),
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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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