TradeStalker's RBI Update 10/05/09

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TradeStalker's

R.B.I. Trader's Update

10 / 5 / 2009

(Published Since 1996)

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Dateline: 6:15 pm eastern time, 10/5/2009

The market opened higher on Monday, and after a quick drop
from 1025.00 to 1021.25 on the ES was reversed. The market
bounced into the 10 am release of the ISM number. A quick
drop from 1031.00 to 1022.25 was reversed, and then the
market started a choppy grind higher. The move lasted until
the ES reached the 1038.00-1038.50 resistance on the ES and
then the market had a small pullback into the close.

The internal gauges that were at oversold extremes have
worked that condition off now. The Vix gave another buy
signal at Monday's close, but after a big up day the market
needs a spark for further good gains. What we are likely
going to see is a pick-up in volatility. The lows from last
week will not be in jeopardy as long as the 1031.50-1030.75
area on the ES holds. On the upside, the market will be a
short if the 1038.00-1038.50 on the ES is rejected again,
along with the NQ rejecting its 1681.00-1682.00 resistance
zone.

On Tuesday look for early strength to be sold, and then if
that plays out the first decent pullback should set up a
trade on the long side. as long as the initial support areas
are held, the market should be in decent shape. However, if
that area is broken and the market doesn't quickly reverse,
then the trends could be rolling over and a drop towards the
1022.00-1021.50 zone on the ES would be a major test of the
market's strength, orlack thereof.



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

1038.00-1038.50
1041.00-1041.75
1045.50-1046.25
1049.50-1050.50

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

1034.00-1033.50
1031.50-1030.75
1028.50-1028.00
1022.00-1021.50
1015.00-1014.50

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

1681.00-1682.00
1686.50-1687.50
1694.00-1695.50

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

1672.50-1672.00
1670.25-1669.75
1665.75-1665.00
1659.00-1658.00
1653.00-1652.00

December 2009 Dow futures resistance
symbols: emini = ymz9

9565-9570
9595-9601
9623-9628

December 2009 Dow futures support
symbols: emini = ymz9

9522-9516
9497-9493
9475-9471
9410-9406
9360-9356

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Good Trading,
Mike Reed
TradeStalker.com

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This publication's primary focus is trading the index
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(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
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is substantial. You can lose more than your original
investment. We are not Registered Investment Advisors or
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