TradeStalker's
R.B.I. Trader's Update
9 / 22 / 2009
(Published Since 1996)
...............................................
Dateline: 6:06 pm eastern time, 9/22/2009
The ES gapped to 1066.50 on the open on Tuesday, just under
the 1067.00-1067.50 resistance, and quickly dropped to
1061.50. The reversal back up fizzled at 1066.00, and a drop
to 1061.50 again followed. A third try also failed, but
buyers stepped in at 1064.00 and the market rallied to new
highs for the day. The ES reached 1069.50 shortly after 1
pm, and the token higher high was quickly reversed. A
pullback held at 1065.00, but the bounce from that level had
no gusto and reversed from 1067.50. A range formed as the
pullbacks held the 1065.50 level while the 1068.00 level was
a lid on the upside. A quick poke over that resistance
reversed from 1068.75, then it dropped to 1065.50 again and
then firmed into the close.
On Wednesday we get the FOMC policy decision on interest
rates around 2:15 pm eastern time. After the early going on
Tuesday, the action was not great as the market chopped
around but didn't go far either way. The ES opened and
closed at about the same price on Tuesday, meaning the
market should be near decision point on direction short
term. The Nasdaq futures (NQ) made or matched a higher high
for 13 straight days now. Also, the top side of the Tuesday
trading range was just under a new high on the SP500 cash.
If the market fails to follow through with good buying on
Wednesday, a secondary top should be forming.
The 1065.50-1065.00 area on the ES was the bottom of the
afternoon range on Tuesday. So, as long as that area is
defended, the bulls are in charge, but a decent rally will
likely set up a nice tradable pullback if it stalls out in
new high ground. If there is a trending move going into the
Fed release, odds favor a reversal shortly before the
release. After the Fed release, there normally is some quick
back-and-forth action and then the market will get a
direction and go that way until late in the day. Beware if
the ES is unable to break through the 1068.75-1069.25 zone
and hold, as it could set up a reversal from under the old
high.
December 2009 SP futures resistance
symbols: emini = esz9 / big contract =spz9
1068.75-1069.25
1071.50-1072.25
1078.00-1078.75
1082.00 begins gap fill
December 2009 SP futures support
symbols: emini = esz9 / big contract =spz9
1065.50-1065.00
1061.75-1061.25
1057.50-1057.25
1052.50-1052.00
December 2009 Nasdaq futures resistance
symbols: emini = nqz9 / big contract = ndz9
1735.75-1736.75
1739.25-1740.50
1746.50-1747.25
December 2009 Nasdaq futures support
symbols: emini = nqz9 / big contract = ndz9
1731.00-1730.50
1725.75-1725.25
1719.75-1719.00
1712.50-1711.50
December 2009 Dow futures resistance
symbols: emini = ymz9
9780-9784
9812-9816
9872-9878
December 2009 Dow futures support
symbols: emini = ymz9
9756-9751
9714-9710
9685-9682
9643-9639
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REMINDER:
Real Time subscribers can view these updates on
the web at this site:
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.
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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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