TradeStalker's RBI Update 09/10/09

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TradeStalker's

R.B.I. Trader's Update

9 / 10 / 2009

(Published Since 1996)

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Dateline: 6:43 pm eastern time, 9/10/2009

The ES popped up and reversed from the 1029.50-1030.00 zone
just 7 minutes after the open on Thursday, and dropped from
1029.50 to the 1023.00-1022.50 support zone. Like Wednesday,
the market turned up from support at 1023.00 in the first
hour and worked its way higher into the early afternoon. The
ES had reactions at each of the resistance areas, but also
held support areas on the pullbacks. The last resistance at
1039.75-1040.25 was tested around 2 pm, and the ES had a
decent shakeout from 1039.25 down to 1033.75 and then the
market turned back up. That was above the 1032.50 zone and
the ES ran up to 1039.50 before backing off into the close.

The market broke out and made new intraday and closing highs
for the bull run. The market hasn't stayed in new high
ground very long recently, and buyers hold bids for a decent
pullback and longs look to lock in profits. After 5 straight
up days, a pullback is way overdo. The sentiment getting
overly bullish, as the Vix hit a multi year low on Thursday.
A reversal from the Vix would give 3 or 4 sell signals and
would set up a good trade on the short side.

Still, the trends are up and as long as the initial support
can hold, no damage is done. However, if the market turns
down from the 1039.50-1040.25 zone and breaks the initial
support, then the trends could be rolling over. If the NYSE
breadth is not at least 2:1 positive, it is a red flag for a
soft market and if the Vix turns up that is also a red flag.

So, look for early strength to be sold and then the first
decent pullback should set up a buying opportunity if the
initial support is held. If that initial support is not
held, then the 1030.50-1030.00 area on the ES must hold. If
it can not, then we could be in for a few days of downside.


December 2009 SP futures resistance
symbols: emini = esz9 / big contract =spz9

1039.50-1040.25
1043.50-1044.00
1049.50-1050.26

December 2009 SP futures support
symbols: emini = esz9 / big contract =spz9

1034.00-1033.50
1030.50-1030.00
1026.50-1026.00
1023.00-1022.50

December 2009 Nasdaq futures resistance
symbols: emini = nqz9 / big contract = ndz9

1684.25-1685.50
1690.60-1691.25
1697.50-1698.50

December 2009 Nasdaq futures support
symbols: emini = nqz9 / big contract = ndz9

1676.00-1675.25
1670.75-1670.25
1667.00-1666.50
1663.00-1661.75

December 2009 Dow futures resistance
symbols: emini = ymz9

9572-9578
9594-9598
9649-9653

December 2009 Dow futures support
symbols: emini = ymz9

9525-9521
9499-9496
9468-9465
9443-9440



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Good Trading,
Mike Reed

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research and data believed reliable, but there is no
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