TradeStalker's RBI Update 10/19/09

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TradeStalker's

R.B.I. Trader's Update

10 / 19 / 2009

(Published Since 1996)

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Dateline: 6:09 pm eastern time, 10/19/2009

Last evening I sent a bearish update, and the day started
perfectly. The ES popped up to near the Friday high on
Monday, reaching 1087.75 just 10 minutes into the day and
they dropped 5 points to 1082.75 by 10 am. However, the move
reversed and when the Friday highs were exceeded we traded
both sides. The 1092.75-1093.25 area gave a quick scalp
short but once broken the 1093 level turned into important
support. A pullback to 1093.25 at around 1 pm set up a trade
to a 1096.75 high, and then a double top formed. A pullback
to 1093.25 with 20 minutes left in stock trading gave a
bounce to 1095.50... but like Friday the ES and NQ both
dropped a good amount into settlement.

Well, with the SP500 closing up 10 points on Monday my
bearish outlook was wrong, or a bit early. Earnings reports
after the close have the futures trading much higher as this
is written. However, the market is skittish (like the last
15 minutes of futures trading on Friday and Monday) and when
we get some bad news, there will likely be a rush out of the
exit door. The upside still appears limited, but the ES
might still want to reach that 1102-1103 area. If that
occurs, and the move stalls out or is quickly reversed, it
would set up a very good shorting opportunity.

On Tuesday look for early strength to be sold, and then if
the market obliges and sells off then that first decent
pullback should set up a buying opportunity if the 1093.50-
1093.00 area on the ES can hold. If that is not held, then a
trading range is the best the market can hope for. If the
1096.25-1096.75 area on the ES is exceeded and not quickly
reversed, then there is a chance of seeing that 1102-1103
area reached before selling / profit taking puts a lid on
the move.



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

1096.25-1096.75
1102.00-1103.25
1107.50-1108.25

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

1093.50-1093.00
1090.50-1090.00
1087.50-1086.50
1083.00-1082.50

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

1773.00-1073.50
1778.00-1779.50
1784.50-1786.00

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

1766.50-1765.50
1761.50-1760.50
1757.25-1756.50
1749.00-1748.25

December 2009 Dow futures resistance
symbols: emini = ymz9

10058-10064
10106-10112
10152-10156


December 2009 Dow futures support
symbols: emini = ymz9

10034-10031
10005-10001
9972-9968
9923-9917


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Good Trading,
Mike Reed

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Past performance does not guarantee future performance.
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.

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This is not an endorsement or recommendation of the SP500
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