TradeStalker's RBI Update 08/31/09

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TradeStalker's

R.B.I. Trader's Update

8 / 31 / 2009

(Published Since 1996)

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Dateline: 6:08 pm eastern time, 8/31/2009

The market gapped down on Monday and under the key support,
and kept dropping until the 1014.75-1014.00 area was broken
by a bit, and then reversed. This was in line with what I
wrote on Sunday night, stating:

"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."

The ES fell to 1013.25 in the first 30 minutes, and then
reversed. After the bounce started I sent an instant message
stating:

(Aug 31-10:35) mike: a pop to 1019.50 is resist / short
if it in the next 10 minutes

The ES popped to 1019.50 a few minutes later, then dropped
4.00 points to 1015.50. The Instant Messages are a nice
addition for members, as more timely notes can be sent as
time allows me. In any case, the ES based out at the
1014.75-1014.25 area and then popped higher. The first pop
reversed at the 1019.75 level, then pulled back quickly. The
drop held at the 1014.75 level and then they rallied to a
new high for the day at the close.

The daily charts are looking toppy, and the late day bounce
appeared to be end of month induced. The upside should be
limited unless there is a bullish spark. The 1014.75-1014.25
area on the ES will need to hold on a pullback, otherwise
things will being to break down in a bigger way. At the
moment it looks like a rally back towards the 1029.25-
1030.00 zone on the ES may be asking too much, but if there
is a rally back to that area and it stalls/ reverses, it
would set up a very good shorting opportunity.

On Tuesday we get the ISM Index 30 minutes into the trading
day. If the market opens higher, look for a shorting
opportunity as soon as upside momentum fizzles. If the ES
pops up to 1024.50-1025.00 on the open and is rejected, it
will be a sign of weakness and the short side should set up
from there. On the other side, if the market opens lower,
look for a reversal from 1015.00 or above to set up a trade
on the long side. For now keep long trades on a tight leash
as the market is still vulnerable coming off of an August
high.

September 2009 SP futures resistance
symbols: emini = esu9 / big contract =spu9
1022.00-1022.50
1029.25-1030.00
1032.50-1033.25
1038.25-1038.75

September 2009 SP futures support
symbols: emini = esu9 / big contract =spu9

1014.75-1014.25
1012.50
1008.00-1007.25

September 2009 Nasdaq futures resistance
symbols: emini = nqu9 / big contract = ndu9

1628.00-1628.75
1637.25-1638.50
1647.25-1648.50
1662.00-1662.50

September 2009 Nasdaq futures support
symbols: emini = nqu9 / big contract = ndu9

1617.50-1616.75
1610.50
1604.50-1603.50

September 2009 Dow futures resistance
symbols: emini = ymu9
9508-9511
9547-9551
9574-9577
9628-9633

September 2009 Dow futures support
symbols: emini = ymu9

9440-9336
9418
9374-9370

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Good Trading,
Mike Reed

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The financial markets are risky. Investing is risky.
Past performance does not guarantee future performance.
The foregoing has been prepared solely for informational
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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
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This is not an endorsement or recommendation of the SP500
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