TradeStalker's RBI Update 10/22/09

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TradeStalker's

R.B.I. Trader's Update

10 / 22 / 2009

(Published Since 1996)

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Dateline: 6:43 pm eastern time, 10/22/2009

The market opened higher on Thursday and that was sold and
the ES dropped from 1080.50 to 1070.25 in the first 35
minutes of trading. The reversal started a good move back,
but the ES had some trouble at 1080.50 again. A pullback
held at 1076.25, and then the move was basically trend-up
into the last 40 minutes of trading. After reaching the
1092.25 level (the 1091.75-1092.25 was last listed
resistance) the ES backed off 4.75 points to 1087.50 before
firming into the close.

The trends and momentum are both back in favor of the bulls
at the moment. however, if the market rallies up to a lower
high and reverses on this move up, then a bigger picture 1-
2-3 type of top could form up here. The market went from
very overbought coming in to the week, to modestly oversold
on Wednesday, and now back to neutral at the moment. The Vix
dropped to a new low for the year, and if that drops much
further and then reverses, it would be a red flag. In any
case, for now the trends remain bullish as long as the
1087.00-1086.50 area on the ES can hold. If that zone is
broken, and not quickly reversed, then things are likely
changing.

We will get the Existing Home Sales number on Friday at
10am, and it could be a market mover. If there is early
strength, and the move reverses from a test of the 1091.75-
1092.25 zone on the ES, that could start a decent pullback.
If that pullback can hold at the initial support areas, then
the market will be in decent shape for a possible run
towards the 1098.50 high. If that zone is not held, then
odds are good that the market either drops pretty hard or
just chops within a range. If the ES falls to the 1076.75-
1076.25 area, that would be a good spot for a reversal if
the market is in decent shape, and not topped out.

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

1091.75-1092.25
1094.50-1095.50
1098.00-1098.50
1102.50-1104.00


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

1087.00-1086.50
1080.25-1079.25
1076.75-1076.25
1072.75-1072.00
1070.25-1069.75

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

1766.00-1766.50
1769.75-1770.50
1775.25-1776.50

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

1758.75-1758.00
1751.75-1751.00
1748.50-1747.75
1743.50-1742.50
1738.50-1737.50

December 2009 Dow futures resistance
symbols: emini = ymz9

10053-10057
10068-10073
10103-10109

December 2009 Dow futures support
symbols: emini = ymz9

10015-10012
9968-9964
9936-9933
9866-9862
9832-9828

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Real Time subscribers can view these updates on
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http://www.tradestalker.com/members


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Good Trading,
Mike Reed
TradeStalker.com

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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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