TradeStalker's RBI Update 10/12/09

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TradeStalker's

R.B.I. Trader's Update

10 / 12 / 2009

(Published Since 1996)

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Dateline: 6:12 pm eastern time, 10/12/2009


We were looking to short early strength on Monday, and the
first intraday update was all that was really needed after
the first 30 minutes as it stated:

"The gap and go open took the ES to the 1075.75-1076.50
zone 30 minutes into trading, and that area was
rejected. If the 1073 level isn't held, the third gap
in 6 trading days will likely fill at 1068.50 on the
ES."

A high was made at 1076.25 and then the move stalled out.
When the updated support at 1073.50 was broken, the ES went
right to 1068.00 level before bouncing. An Instant message
was sent just after 3pm stating:

(Oct 12-15:08) mike: a failure to clear 1072.50 is a
negative. must clear and hold that or mkt still
vulnerable. 1065 now a key/ pivital support

and then:

(Oct 12-15:34) mike: that 72.50 should be it for the
bounce

The ES reached 1072.50, exactly, then stalled and dropped to
1070.00 (we covered at 1070.75 per another I.M.) where it
was able to hold and bounce back to 1072.75 before the
close. That bounce reversed from the 1072.50-1073.00
resistance and the futures softened into the close.

The averages all closed at new highs for the bull move on
Monday. However, the old high area looks like it will be
tough to get through and that a deeper pullback should be in
the cards. That 1076.25-1076.50 area was rejected, yet the
SP500 still closed up for the 6th day in a row. For now, the
market is still vulnerable for more downside unless the
initial resistance areas are exceeded, and not quickly
reversed.

The end of day bounce formed a rising wedge pattern on the 5
minute charts. So, if there is early strength that reverses
from around the 1072.50-1072.75 area on the ES, it should
set up a shorting opportunity. If there is early weakness
first, then a double bottom at the 1068.50-1068.00 area
would set up a quick trade on the long side. However, if
that zone is not defended on Tuesday, then a drop back
towards the 1060.00-1059.00 area would be a test of what
should be key support. The 1054.75-1053.50 area, at a
minimum, is likely should that 1060 level break and then
hold on a bounce.


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

1072.50-1072.75
1075.25
1076.25-1076.50
1082.00-1082.75

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

1068.50-1068.00
1065.50-1065.00
1060.00-1059.00
1054.75-1053.50

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

1729.00-1729.75
1734.00
1739.50-1740.50
1743.25-1744.25

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

1717.50-1716.50
1714.50-1713.25
1707.75-1706.50
1697.25-1696.50

December 2009 Dow futures resistance
symbols: emini = ymz9

9828-9831
9858
9872-9877
9922-9926

December 2009 Dow futures support
symbols: emini = ymz9

9795-9793
9784-9779
9714-9708
9682-9679



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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

Copyright (c) 2009 by TradeStalker.com, Ft Wayne, IN.
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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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