TradeStalker's RBI Update 09/23/09

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TradeStalker's

R.B.I. Trader's Update

9 / 23 / 2009

(Published Since 1996)

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Dateline: 6:25 pm eastern time, 9/23/2009

The ES popped up to our 1068.75-069.25 resistance on
Wednesday, and that was rejected 3 times before a drop to
the 1065.50-1065.00 support zone. An instant message was
sent telling members to cover shorts at 1065.50 or better,
and it was just 2 ticks from the early low at 1065.00. The
bounce to 1068.00 reversed, setting up a re-entry and the ES
dropped 5.75 points to 1062.25 - just 2 ticks over the
1061.75-1061.25 support - then the pre-Fed release rally
began. The 1065-1066 updated resistance gave the market some
trouble, but the market moved higher going into the Fed
release. After he Fed release the ES ran up to 1075.75 and
dropped hard. After that occurred, an instant message was
sent saying:

(Sep 23-15:01) mike: 72-73 resist, they topped if that zone
not cleared

The bounce fizzled at 1072.25 and reversed, and it was the
start a trend down move of 17 points to 1055.25 at the 4 pm
close for stocks.

The averages all made outside days, closing on their lows
after posting new highs for the year on the post release
pop. The break of the 1072 level brought on the selling, and
it was the first persistent downtrend in some time. Lately,
the market has been coming right back with a good rally.
This time it doesn't look like that will happen. The Vix
gave 2 sell signals at Wednesday's close, and some key
levels were taken out on the downside. Also, the daily chart
is nearly parabolic, and formed a wedge along the way.

It looks like a drop to the 1052.50-1052.00 area on the ES
might be a "magnet" before a chance for a rally attempt.
Still, a decent bounce will likely be sold just as soon as
the upside stalls out, as it looks like we should get
another day down before the market tries to get its rally
going again.

So, on Thursday look for shorting opportunities on the
bounces. Early weakness that reverses in the first 20
minutes might set up a bounce, but that first decent bounce
will set up a good shorting opportunity as soon as the
upside loses its momentum. A move back to the
1064.00-1064.50 area that fizzles will bring in selling if
the market is still real weak. If there is a gap down open,
then there should be pretty good resistance around the
1059.50-1060.50 area.

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

1064.00-1064.50
1066.75-1067.25
1071.50-1072.25
1075.00-1075.75

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

1055.75-1055.25
1052.50-1052.00
1047.25-1046.50
1043.25-1042.50

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

1732.75-1733.25
1737.25-1738.25
1748.50-1749.00
1752.50-1753.25

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

1720.75-1720.25
1716.25-1715.50
1711.50-1710.50
1702.25-1700.50

December 2009 Dow futures resistance
symbols: emini = ymz9

9754-9757
9773-9777
9836-9839
9852-9857


December 2009 Dow futures support
symbols: emini = ymz9

9682-9679
9643-9639
9602-9598
9572-9568

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Real Time subscribers can view these updates on
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http://www.tradestalker.com/members


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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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