TradeStalker's
R.B.I. Trader's Update
10 / 20 / 2009
(Published Since 1996)
...............................................
Dateline: 6:29 pm eastern time, 10/20/2009
We were shorting early strength on Tuesday, and the ES
popped up on the open and headed lower from there. The ES
dropped from 1095.25 to 1087.25 before bouncing. That was at
the 1087.50-1086.50 support area, but the bounce stalled out
and reversed from the 1092.00 level on the ES and then broke
down. The ES fell to 1082.00 and quickly reversed, and
holding that 1083.00-1082.50 support kept the market from
caving. Buying came back in and the ES rallied to the
1087.50-1088.50 resistance. That gave us a 2.75 point dip
and a 3.75 point dip before the market firmed and closed on
an upswing.
The market is in 'sell the bounce mode' unless the late
Tuesday highs are cleared and not quickly reversed. The
rallies are not holding, and while the market reversed a lot
of the Monday gains, the sentiment is even more complacent.
The 5 day RSI on the Vix dropped to 12.6, a level not seen
in a few years. The intraday pattern on Tuesday was a big
rounded top, and that is what the daily chart is looking
like if there is more weakness on Wednesday.
We get the Fed's Beige book release at 2 pm on Wednesday. To
start the day, use early strength to get short, especially
if the initial resistance around 1090 on the ES and 1759 on
the NQ is tested. If the initial support is held, then one
more run-up would be possible. However, if those areas are
broken, then the trends will roll over again, and a test of
the Tuesday lows would need to hold. If the 1082.50-1082.00
area does not hold, then the ES should at least test the
1077.75-1076.50 area before a reversal.
December 2009 SP futures resistance
symbols: emini = esz9 / big contract =spz9
1090.00
1092.00-1093.00
1096.25-1096.75
1102.00-1103.25
December 2009 SP futures support
symbols: emini = esz9 / big contract =spz9
1087.25-1086.75
1082.50-1082.00
1077.75-1076.50
1072.75-1072.00
December 2009 Nasdaq futures resistance
symbols: emini = nqz9 / big contract = ndz9
1759.00
1761.25-1762.50
1766.00-1766.50
1775.50-1776.50
December 2009 Nasdaq futures support
symbols: emini = nqz9 / big contract = ndz9
1753.00-1752.5
1744.50-1743.50
1738.00-1736.50
1733.25-1732.50
December 2009 Dow futures resistance
symbols: emini = ymz9
9998
10022-10027
10058-10064
10106-10112
December 2009 Dow futures support
symbols: emini = ymz9
9982-9979
9939-9936
9884-9878
9842-9838
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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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This publication's primary focus is trading the index
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trade the following ETF's (SPY), (QQQQ), (SDS), (QID),
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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
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