TradeStalker's
R.B.I. Trader's Update
10 / 15 / 2009
(Published Since 1996)
...............................................
Dateline: 6:08 pm eastern time, 10/15/2009
The market opened lower on Thursday, and the ES held the key
1083.00-1082.50 support zone and turned up. The move fizzled
at 1087.50, 1 tick under Wednesday's settlement, then fell
back to 1082.75 and reversed again. A rally back to 1088.00
was rejected, but the market didn't fall too far before
turning back up and broke through the 1088 level. The ES
held at 1088.25 on a pullback, then after there was sprint
to a new high at 1093.25 the move fizzled shortly after
stocks closed and then dropped to settle under fair value.
The indicators that were overbought are giving a bearish
divergence at Thursday's close. In addition, the Vix
imploded by 5% when the market was basically flat for the
day shows that there is almost no fear of the downside. The
Vix gave 3 out of 5 possible sell signals at Thursday's
close, and if it reverses on Friday it could give all 5 sell
signals.
Like noted last night, the market is battling between an
extreme overbought status versus good upside momentum. On
Thursday the 1083.00 area was key, and on Friday is looks
like the 1088.50-1088.00 area could play the same roll. If
that can hold, no damage done yet. However, if broken, then
the 1083.00-1082.50 area will be a major support zone. If
those are not held, then a top of some sort should be in
place short term.
On Friday look for early strength to be sold, then the first
decent pullback must hold that 1088.50-1088.00 area. If that
is broken, and not quickly reversed, then the trends will
roll over and a test of that 1083.00-1082.50 area may be in
the cards. If the market can hold the initial support, then
one more run-up towards the bottom of the gap at the
1102.00-1103.00 zone (from 10-06-08) might be tested before
this mini melt-up is over.
December 2009 SP futures resistance
symbols: emini = esz9 / big contract =spz9
1092.75-1093.25
1097.50-1098.25
1102.50-1104.00 major
December 2009 SP futures support
symbols: emini = esz9 / big contract =spz9
1088.50-1088.00
1083.00-1082.50
1077.75-1076.50
1072.75-1072.00
December 2009 Nasdaq futures resistance
symbols: emini = nqz9 / big contract = ndz9
1754.00-1755.00
1760.00-1761.00
1767.50-1768.50
December 2009 Nasdaq futures support
symbols: emini = nqz9 / big contract = ndz9
1746.25-1745.75
1741.75-1740.50
1737.00-1735.50
1731.25-1730.50
December 2009 Dow futures resistance
symbols: emini = ymz9
10004-10007
10044-10049
10082-10087
December 2009 Dow futures support
symbols: emini = ymz9
9961-9957
9922-9918
9881-9876
9842-9838
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REMINDER:
Real Time subscribers can view these updates on
the web at this site:
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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