TradeStalker's
R.B.I. Trader's Update
10 / 11 / 2009
(Published Since 1996)
...............................................
Dateline: 5:26 pm eastern time, 10/11/2009
After breaking and reversing the 1060 level in the first 10
minutes on Friday, the ES had trouble getting through and
holding the initial resistance areas. The market went into a
narrow and choppy range, then at around 2:30 pm, a run to a
new high in the 1067-1068 resistance zone. There was a
reaction from 1067.75, but the pullback was just to the
1065.25 level that was previously resistance, and then the
market rallied to close on its highs.
The Columbus Day holiday on Monday will probably be thinly
traded again, as not all of the players will be present.
This past week the SP500 closed higher every day, and there
was a gap up on Tuesday and Thursday that are both still on
the charts. The market was having trouble with the rallies
failing, but still had a good underlying bid on the drops.
Had the market reversal from the 1067-1068 area late Friday
gathered some steam, rather than reversing from its breakout
area, the odds of a top being in place would have looked to
be pretty high. But they rallied into the close, so no
damage done so far.
Most of the internal gauges are either neutral, or
overbought. The Vix gave 1 of 5 possible sell signals at
Friday's close, and a turn up on the Vix on Monday would
give a couple more sell signals. Still, the trends and
momentum are still in favor for more upside. The market will
be okay as long as the initial support areas hold on Monday.
However, if/when a decent pullback isn't quickly reversed,
things will change and a quick change in sentiment could
cause the market to react with a fast and sharp drop.
On Monday look for early strength to set up a shorting
opportunity (or the first pop that fizzles out if there is a
slightly lower open), and if that plays out then the initial
support areas will need to hold. If those are not quickly
reversed on a pullback, then things are getting a bit toppy
and a drop back to the 1060.25-1059.50 area would be key
support. If that area is finally broken and not reversed
right away (like both Thursday and Friday morning) then the
1054.75-1054.25 area might be a magnet before a decent
bounce occurs.
December 2009 SP futures resistance
symbols: emini = esz9 / big contract =spz9
1068.50
1072.00-1073.00
1075.75-1076.50
1082.00-1082.75
December 2009 SP futures support
symbols: emini = esz9 / big contract =spz9
1065.50-1065.00
1060.25-1059.50
1054.75-1054.25
1048.00-1047.50
December 2009 Nasdaq futures resistance
symbols: emini = nqz9 / big contract = ndz9
1727.75
1730.75-1732.00
1730.75-1732.00
1743.25-1744.25
December 2009 Nasdaq futures support
symbols: emini = nqz9 / big contract = ndz9
1721.00-1720.00
1714.50-1713.25
1707.00-1706.50
1697.25-1696.50
December 2009 Dow futures resistance
symbols: emini = ymz9
9814
9830-9834
9877-9882
9922-9926
December 2009 Dow futures support
symbols: emini = ymz9
9784-9779
9724-9720
9682-9679
9625-9622
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Real Time subscribers can view these updates on
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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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