TradeStalker's
R.B.I. Trader's Update
9 / 27 / 2009
(Published Since 1996)
...............................................
Dateline: 5:26 pm eastern time, 9/27/2009
The market opened lower on Friday but then turned back up
from the 1041.50-1041.00 support zone on the ES and rallied
to the 1048.50-1049.00 resistance zone. The move reversed,
and a persistent trend down move to the 1038-1037
support/target zone occurred. After a brief poke under that
support, the market reversed around 1 pm and then a decent
rally followed. However, the rally lost steam after the ES
reached 1044.75 and then a little 1-2-3 top was made after
the ES reversed from 1043.75 and it dropped 4.50 points to
1039.25 before the close.
The market dropped for 3 days in a row, starting with the
key reversal day on Wednesday. This has put a number of
short term internal oscillators into oversold status. My 3
Day Thrust oscillator is at -.70 (a normal extreme is +/-
.50) and my RBI oscillator is also in extreme oversold
status. Also, the 4 day volume ratio is down to .33, which
is very compressed.
That said, the market has reason to put together a decent
bounce. If it cannot bounce enough to relieve the oversold
status, then it is in poor shape and we should get a deeper
selloff into Tuesday. If the market can put together a
decent rally, it will set up another sizable drop as long as
last week's highs are not exceeded.
On Friday the market had trouble getting over the 1044.00-
1144.75 area on the ES and the 1700.25-1701.00 on the NQ.
Both of those areas were sold into, and must be exceeded and
not quickly reversed to get another push higher in gear. If
that occurs, just beware that when the upside momentum
stalls out, a decent pullback should follow. On the
downside, the market turned up quickly from the 1036.25 low
and probably trapped some late shorts, so that area must be
defended if the market is going to avoid more trouble. If it
is not quickly reversed, then the pressure may be on for a
move towards the 1030.50-1029.50 zone on the ES to see if
the market will either snap back, or fall apart.
December 2009 SP futures resistance
symbols: emini = esz9 / big contract =spz9
1044.00-1144.75
1048.50-1049.00
1054.50-1055.00
1057.25-1058.00
1061.50-1063.00 **major
December 2009 SP futures support
symbols: emini = esz9 / big contract =spz9
1039.00-1038.25
1036.25-1035.75
1030.50-1029.50
1022.00-1021.00
December 2009 Nasdaq futures resistance
symbols: emini = nqz9 / big contract = ndz9
1700.25-1701.00
1708.50-1709.00
1717.75-1719.25
1722.75-1724.50
December 2009 Nasdaq futures support
symbols: emini = nqz9 / big contract = ndz9
1692.50-1691.75
1688.75-1687.75
1681.25-1679.75
1672.50-1671.50
December 2009 Dow futures resistance
symbols: emini = ymz9
9646-9650
9671-9675
9722-9727
9745-9748
December 2009 Dow futures support
symbols: emini = ymz9
9593-9590
9576-9573
9522-9518
9448-9443
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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.
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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