TradeStalker's
R.B.I. Trader's Update
10 / 27 / 2009
(Published Since 1996)
...............................................
Dateline: 7:36 pm eastern time, 10/27/2009
The ES opened higher on Tuesday then reversed from 1068.75.
The plunge lower took the ES to 1057.00, just over the
1056.75-1054.50 area and reversed. A good rally followed,
however the 1068.50-1069.00 area was exceeded by 2 ticks
then the move reversed, and the ES fell to test the low. Off
of the 1057.00 low, the ES bounced and then pulled back to a
higher low and a 1-2-3 bottom was in place. A rising wedge
formed, and off the 1065.50 top the ES dropped to 1058.25
before firming into the close.
The market continues to act poorly. However, the short term
indicators are now very oversold. My 3 day Thrust oscillator
is at -.81 (+/-.50 normal extreme), the RBI Oscillator is in
buy territory, and the McClellan Oscillator reached the -250
level. The Vix, which gave a lot of sell signals last week,
jumped quite a bit over the last 2 days and is giving 1 buy
signal here.
The market should normally rally, or give back and forth
action at the worst, under this condition *unless* the
market is in a melt-down mode. A decent rally could be in
the cards as long as the initial support areas are held on
Wednesday. If those support zones are not held, then the
1054.50-1054.00 area on the ES is as far as a drop should go
if there is going to be a decent rally. If we do get a
decent rally, it will make a good shorting opportunity
should the ES get back towards the 1072.50-1073.25 area on
the ES, and then stall and/or reverse back to the downside.
December 2009 SP futures resistance
symbols: emini = esz9 / big contract =spz9
1065.50-1066.00
1069.00-1069.50
1072.50-1073.25
1076.50-1077.25
1083.00-1084.00
December 2009 SP futures support
symbols: emini = esz9 / big contract =spz9
1058.00-1057.00
1054.50-1054.00
1050.50-1049.75
1045.75-1044.75
December 2009 Nasdaq futures resistance
symbols: emini = nqz9 / big contract = ndz9
1728.75-1729.50
1733.75-1734.50
1737.50-1738.50
1746.50-1747.25
December 2009 Nasdaq futures support
symbols: emini = nqz9 / big contract = ndz9
1714.00-1713.00
1707.50-1706.50
1700.25-1699.00
1692.75-1690.50
December 2009 Dow futures resistance
symbols: emini = ymz9
9870-9875
9893-9899
9918-9923
9944-9947
December 2009 Dow futures support
symbols: emini = ymz9
9812-9807
9783-9779
9734-9728
9698-9692
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---------------------------
Good Trading,
Mike Reed
Copyright (c) 2009 by TradeStalker.com, Ft Wayne, IN.
TradeStalker Updates may not be redistributed without
permission.
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PO Box 9783, Ft Wayne, IN, 46899
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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