TradeStalker's
R.B.I. Trader's Update
9 / 9 / 2009
(Published Since 1996)
...............................................
Dateline: 6:44 pm eastern time, 9/9/2009
The ES popped up to 1027.25 on the open on Tuesday (which we
were looking to short) then it quickly dropped 4 points to
1023.25 before reversing. The initial support was at
1023.00-1022.50, so the reversal came from a logical spot
and set up a trade on the long side. After having trouble at
1030 on the first try to get a rally going, the ES pushed
through on the next attempt and rallied to the updated
resistance at the 1035.50-1036.50 zone. The ES reached
1036.25 and quickly backed off, and the break of 1032.50
opened the door for the ES to continue its drop. After
falling 9.25 points to 1027.00 on the ES, the market turned
around and bounced back into the close.
NOTE: We roll over to December futures on
Thursday. The new symbol is now ES Z9 for the
emini SP futures. It might take a day or two
before the numbers are more precise.
The indicators are still overbought and with the SP500 cash
closing at a recovery high there are divergences that are
normally bearish. Also, there were more than 2100 advancing
issues on the NYSE for 4 straight days and that is not
normal. It tends to lead to a pullback for a day at least.
In addition, the move looks to be losing some upside
momentum.
On Thursday look for early strength to set up a shorting
opportunity. If that plays out, then the first decent
pullback will need to hold around the 1019.75-1019.00 area
on the ES December futures to avoid trouble. If the market
gets down there and cannot get turned around, then a trip
back towards the 990's is possible on this leg down. If the
market has enough gas in its tank to take out the 1031.25-
1031.75 area on the December ES, and can hold that area on a
pullback, then the upside could get in a break-out mode and
try to get to the 1039.75-1040.25 area if the SP500 is not
going to make a double top up here.
December 2009 SP futures resistance
symbols: emini = esz9 / big contract =spz9
1029.50-1030.00
1031.25-1031.75
1034.25-1034.75
1039.75-1040.25
December 2009 SP futures support
symbols: emini = esz9 / big contract =spz9
1027.50
1023.00-1022.50
1019.75-1019.00
1014.75-1014.00
December 2009 Nasdaq futures resistance
symbols: emini = nqz9 / big contract = ndz9
1670.25-1670.75
1673.75-1674.75
1679.50-1680.00
1685.75-1686.50
December 2009 Nasdaq futures support
symbols: emini = nqz9 / big contract = ndz9
1663.75
1658.25-1656.75
1644.00-1643.00
1638.00-1637.50
December 2009 Dow futures resistance
symbols: emini = ymz9
9494-9499
9510-9514
9538-9542
9596-9599
December 2009 Dow futures support
symbols: emini = ymz9
9532
9414-9411
9386-9383
9339-9334
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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.
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.
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