TradeStalker's
R.B.I. Trader's Update
9 / 16 / 2009
(Published Since 1996)
...............................................
Dateline: 6:29 pm eastern time, 9/16/2009
The ES opened higher on Wednesday, but the move reversed
from just over the Tuesday high and from 1053.25 the ES
dropped 5.50 points to a 1047.75 low. That was at the 60ema
on the 5 minute chart and the ES reversed and bounced to
1053.25 again. After a pullback to 1050.00 was reversed, the
ES broke and held that 1053.50 updated support and ran up to
1060.50. Another small pullback held at 1058.50, and then
the market headed higher again. After reaching 1063.50 on
the ES, there was a small pullback and then the next pop was
rejected at 1063.75. The ES dropped 4 points to 1059.75, and
quickly turned back up at 3 pm. The move took the ES to a
new high at 1064.00 at the close.
Over the last 9 days the SP500 rallied 64 points on a
closing basis. At that pace the SP500 would reach 1100 in
the next 4 days. Given the amount of energy it took to get
this far, it would be very surprising if that occurs. The
market is due for a pullback soon, and if it pulls back too
far it could break an almost parabolic wedge pattern on the
daily chart. In addition to that, the breadth on the NYSE
has been positive for 9 straight days, which is something
that is rare. Most of the internal oscillators have also
made huge moves. For example, the McClellan Oscillator went
from extreme oversold at -230 on September 2nd to a +211 at
the Wednesday close.
There has been great momentum behind this move, so there
might be more to go on the upside before a pullback begins.
The market has been making early lows, then turning back up
and making highs late in the day. If the market does the
opposite on Thursday, and an early rally is reversed in the
first 40 minutes of trading, then things could be changing.
However, as long as the 1058.50-1058.00 area on the ES is
defended on a pullback, then the bulls are still in control.
The way the market is acting, the ES shouldn't even get down
there if the market is still strong. Beware though that if
early strength reverses, and then that 1058.50-1058.00 zone
is broken, then the trends will roll over and shorting the
bounces would then be the better odds trade. The NQ might be
a better short as it weakened late in the day while the ES
held up.
December 2009 SP futures resistance
symbols: emini = esz9 / big contract =spz9
1063.75-1064.25
1067.75-1068.25
1072.50-1074.00
December 2009 SP futures support
symbols: emini = esz9 / big contract =spz9
1060.00
1058.50-1058.00
1053.50-1052.50
1048.75-1047.75
1044.50-1044.25
1041.50-1041.00
December 2009 Nasdaq futures resistance
symbols: emini = nqz9 / big contract = ndz9
1718.50-1719.25
1722.50-1723.50
1727.75-1728.50
December 2009 Nasdaq futures support
symbols: emini = nqz9 / big contract = ndz9
1716.00
1713.25-1712.50
1704.00-1703.00
1697.75-1696.50
1692.00-1691.00
1689.75-1689.00
December 2009 Dow futures resistance
symbols: emini = ymz9
9737-9741
9771-9773
9818-9821
December 2009 Dow futures support
symbols: emini = ymz9
9704
9692-9689
9652-9648
9622-9618
9592-9588
9548-9544
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Good Trading,
Mike Reed
Copyright (c) 2009 by TradeStalker.com, Ft Wayne, IN.
TradeStalker Updates may not be redistributed without
permission.
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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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