TradeStalker's
R.B.I. Trader's Update
10 / 21 / 2009
(Published Since 1996)
...............................................
Dateline: 6:23 pm eastern time, 10/21/2009
The market opened lower on Wednesday, then turned up and
rallied to a new high on the ES for the year. That 1098.50
level was soundly rejected, and then the upside began to
churn. That meant a loss of momentum, and after a poke to
1095.50 failed, the ES dropped to its afternoon low just
over 1091 and then bounced again. The move stalled out after
1094.75 was touched, and then in the last hour the late
buyers headed for a crowded exit door. The ES fell 22+
points from that 1094.75 bounce high to 1072.50, right at
the last support at the 1072.75-1072.00 zone, before a
bounce into the close.
It is no surprise to see the late day dumping of stocks on
Wednesday. As noted in the weekend update, the market is
vulnerable and in a topping process. Given the complacency
among buyers, this selloff should be more than a 1 day
affair. The topping process appears to be over now given the
technical damage done by the late drop.
On Thursday we get Initial Claims before the open, and the
Leading Indicators 30 minutes into the day. If the market
opens lower, look for a reversal in the first 40 minutes to
set up a decent bounce. However, don't expect a bounce to
stick as the path of least resistance should be to the
downside and a drop back towards the 1063.00-1062.50 area on
the ES would be key. If there is a bounce back towards the
1088.00-1088.50 area, and the run-up stalls out, it should
set up a very good shorting opportunity.
December 2009 SP futures resistance
symbols: emini = esz9 / big contract =spz9
1082.75-1083.50
1088.00-1088.50
1091.25-1091.75
1094.50-1095.50
December 2009 SP futures support
symbols: emini = esz9 / big contract =spz9
1072.75-1072.00
1068.00-1067.50
1063.00-1062.50
1056.00-1054.50
December 2009 Nasdaq futures resistance
symbols: emini = nqz9 / big contract = ndz9
1756.50-1757.00
1762.00-1762.50
1766.00-1766.50
1771.75-1772.50
December 2009 Nasdaq futures support
symbols: emini = nqz9 / big contract = ndz9
1748.50-1747.75
1743.50-1742.50
1738.00-1736.50
1733.25-1732.50
December 2009 Dow futures resistance
symbols: emini = ymz9
9940-9944
9975-9979
10007-10011
10037-10043
December 2009 Dow futures support
symbols: emini = ymz9
9844-9838
9811-9808
9751-9747
9716-9712
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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
permission.
This publication's primary focus is trading the index
futures. However, you can also use my nightly updates to
trade the following ETF's (SPY), (QQQQ), (SDS), (QID),
(DIA), and (DOG)
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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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