TradeStalker's
R.B.I. Trader's Update
10 / 6 / 2009
(Published Since 1996)
...............................................
Dateline: 6:50 pm eastern time, 10/6/2009
The market had a "gap and go" open on Tuesday, and the ES
went parabolic to 1056.75 (a tick under updated resistance)
then backed off. The bounce to 1055.50 reversed, setting up
a 1-2-3 top, and the ES fell 10 points more points after the
1052 level gave way. After holding a tick over the updated
support at 1042.50, a bounce fizzled at the 1052.50
resistance (where we were selling) and dropped 4.50 points
to 1048.00 (where we were buyers). The bounce off 1048.00
was just 3.25 points to 1051.25, then the ES dropped into
the close.
We were trading both sides on Tuesday, and probably will be
again on Wednesday. All of the indicators are now in neutral
positions, so the relief rally should be about over with.
The upside lost momentum by early afternoon on Tuesday, and
the pullback from the high was 14 points on the ES. That
1057.00-1058.00 area is a key hurdle for the market short
term. If that is not exceeded and held, then the market will
be in a trading range, at best. A test of the 1042.75-
1042.50 area on the ES would need to be quickly reversed,
otherwise the market would be breaking down and a fill of
the gaps on the daily charts is likely before a rebound
attempt. If the market drops back to that 1038.50-1038.00
area, and then gets turned back up, it could start a bounce
back of about 10 points on the ES before it ends.
The pattern into the Tuesday close was bearish as the
1052.00-1052.50 area was rejected. On Wednesday look for a
selling opportunity if there is early strength, and
especially if it stalls/reverse from near the 1052 area. If
that plays out and the market drops to test the Tuesday
afternoon lows, a double bottom would set up a trade on the
long side. However, if the market falls through that area
without signs of a reversal, then it's down to the next
support zone and it should determine the strength or
weakness of the recent action. A drop down towards the
1034.00-1033.50 zone will need to be reversed, otherwise the
downside could gather some steam.
December 2009 SP futures resistance
symbols: emini = esz9 / big contract =spz9
1052.00-1052.50
1057.00-1058.00
1065.00-1065.50
December 2009 SP futures support
symbols: emini = esz9 / big contract =spz9
1042.75-1042.50 **key
1038.50-1038.00 **gap
1034.00-1033.50 **major
1031.50-1030.75
1028.50-1028.00
December 2009 Nasdaq futures resistance
symbols: emini = nqz9 / big contract = ndz9
1703.50-1704.25
1711.00-1712.50
1719.75-1720.75
December 2009 Nasdaq futures support
symbols: emini = nqz9 / big contract = ndz9
1686.75-1686.00 **key
1680.00-1678.75 **gap
1672.50-1672.00 **major
1670.25-1669.75
1665.75-1665.00
December 2009 Dow futures resistance
symbols: emini = ymz9
9685-9688
9717-9724
9797-9802
December 2009 Dow futures support
symbols: emini = ymz9
9611-9606 **key
9568-9563 **gap
9522-9516 **major
9497-9493
9475-9471
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Good Trading,
Mike Reed
TradeStalker.com
Copyright (c) 2009 by TradeStalker.com, Ft Wayne, IN.
TradeStalker Updates may not be redistributed without
permission.
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)
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The foregoing has been prepared solely for informational
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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
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extremely liquid and tends to lead the other markets.
This is not an endorsement or recommendation of the SP500
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