TradeStalker's
R.B.I. Trader's Update
10 / 26 / 2009
(Published Since 1996)
...............................................
Dateline: 6:33 pm eastern time, 10/26/2009
The ES broke over 1078.50 shortly after the open on Monday,
then held it on a pullback, and a rally to the 1086.75-
1087.50 zone followed. The ES reached 1088.50 then dropped,
and then the bounce to 1087.50 reversed. That set up a 1-2-3
top, and when the 1083 level broke, the market went into
free-fall. The ES fell to 1061.25 with 30 minutes left, and
then rallied back about 6 points in volatile trading into
the close.
The ES broke the bottom of last week's range, as the topping
action continues. The short term gauges are getting
oversold, so a bounce could start at any time now as long as
the ES can stay over the 1061.75-1061.25. A break and hold
over the initial resistance can cause a bit of a short
squeeze. Just don't fall in love with the long side, as
bounces are still going to be sold when they run out of
steam. The first big hurdle would be the 1071.50-1072.50
zone on the ES. That's where the break-down occurred, and
should be pivotal. If we do get a decent rally back to the
1076.50-1077.25 zone and it stalls out, that could set up a
good shorting opportunity.
On Wednesday look for early weakness to set up a trade on
the long side if there is a reversal that starts within the
first 40 minutes of trading. If that occurs, then the first
good resistance is around the 1071.50-1072.50 zone on the
ES. The market is still weak unless/until that area is
exceeded. If those are not reversed then the 1076.50-1077.25
zone would be a key resistance. If the ES cannot hold the
1061.75-1061.25 zone, then a drop to the 1056.75-1054.50
zone will reverse if the market is not falling apart.
December 2009 SP futures resistance
symbols: emini = esz9 / big contract =spz9
1067.50
1071.50-1072.50
1076.50-1077.25
1084.50-1085.00
December 2009 SP futures support
symbols: emini = esz9 / big contract =spz9
1061.75-1061.25
1056.75-1054.50
1045.75-1044.75
December 2009 Nasdaq futures resistance
symbols: emini = nqz9 / big contract = ndz9
1750.25
1754.50-1755.50
1760.50-1761.50
1769.75-1770.75
December 2009 Nasdaq futures support
symbols: emini = nqz9 / big contract = ndz9
1740.75-1740.00
1734.50-1733.00
December 2009 Dow futures resistance
symbols: emini = ymz9
9855
9887-9890
9934-9937
9993-9998
December 2009 Dow futures support
symbols: emini = ymz9
9798-9793
9753-9749
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Good Trading,
Mike Reed
TradeStalker.com
Copyright (c) 2009 by TradeStalker.com, Ft Wayne, IN.
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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
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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
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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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