Tuesday, October 13, 2009

TradeStalker's RBI Update 10/13/09

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TradeStalker's

R.B.I. Trader's Update

10 / 13 / 2009

(Published Since 1996)

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Dateline: 5:46 pm eastern time, 10/13/2009

The ES opened lower on Tuesday, then bounced to Monday's
closing range and reversed back down, a drop from 1071.00
down to 1063.00 was over in the first 40 minutes, then
buying came in and drove the market higher. The ES reached
1072.00, just under the 1072.50-1072.75 initial resistance,
then dropped to 1066.25 by mid afternoon. A bounce to
1072.00 formed a double top, then the ES dropped 4 points to
1068.00 just before settling.

After the bell earning reports have the market up pretty
high, and near the high on the ES. On top of that, on
Wednesday we get Retail Sales before the open, then the FOMC
Minutes at 2 pm. So the volatility ought to pick up,
especially since neither side has been able to hold on to a
trend for very long.

On Wednesday, look for early strength that reaches the
1076.25-1076.50 zone for a potential reversal. If that plays
out, beware that the first decent pullback should set up a
buying opportunity. That could be around the 1072-1071 area
if the ES fills its gap and then reverses. As long as that
area holds, no damage done and the upside will remain
intact. However, should that zone break and not quickly
reverse, then the trends could roll over and make shorting
the bounces the better odds trade.

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

1072.00-1072.50
1076.25-1076.50 **strong
1082.00-1082.75 **bottom of big gap
1087.50-1088.00


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

1066.50-1066.00 **must hold
1063.00
1060.00-1059.00
1054.75-1054.25


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

1731.75-1732.50
1739.50-1740.50 **strong
1746.25-1747.25 **bottom of big gap
1752.75-1754.00


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

1724.50-1723.50 **must hold
1720.25
1717.75-1716.50
1704.50-1703.25


December 2009 Dow futures resistance
symbols: emini = ymz9

9836-9842
9872-9877 **strong
9922-9926 **bottom of big gap
9970-9974


December 2009 Dow futures support
symbols: emini = ymz9

9792-9790 **must hold
9759
9714-9708
9682-9679

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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
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