TradeStalker's
R.B.I. Trader's Update
10 / 28 / 2009
(Published Since 1996)
...............................................
Dateline: 6:14 pm eastern time, 10/28/2009
The market gapped down on Wednesday, then the bounce reached
the Tuesday closing range and reversed. From there it was a
steady trend down day, as every bounce attempt was feeble
and reversed when the move fizzled out. The 1052-1052.50
area on the ES was good resistance, as the selling took the
ES to 1038.00 just before stocks settled.
After the topping out action last week, the ES broke its 6
day trading range and that was the first breakdown. Now the
SP500 cash broke bottom of the rising wedge from the 3-6 low
to the 7-8 low. However, it closed right at a channel line
drawn across the 8-17, 9-02, and 10-02 lows. Any further
weakness will break that trendline support. If broken, and
there isn't a good reversal back to the upside, then the
1020-1018 area on the SP500 cash would be a key support
area.
That said, if there is a decent oversold bounce from here,
then it will likely fail due to the technical breakdown.
There should be good resistance at the 1045.75-1046.00 area
on the ES, and if broken then at the 1051.75-1052.75 zone.
The 1045.75-1046.00 area must be exceeded, and not quickly
reversed, to put a dent in the downside momentum.
On Thursday there is GDP and Initial Claims before the open.
The bounces will still be shorting opportunities when the
upside momentum fizzles out. In order to avoid more sharp
selling, the ES needs to get over the initial resistance
zones and not reverse. Even if that occurs, the bounces will
cause reactions at the least on the way back up.
December 2009 SP futures resistance
symbols: emini = esz9 / big contract =spz9
1042.50-1043.00
1045.75-1046.00
1051.75-1052.75
1055.50-1056.00
December 2009 SP futures support
symbols: emini = esz9 / big contract =spz9
1038.50-1038.00
1035.50-1035.00
1030.75-1029.75
1019.00-1015.00
December 2009 Nasdaq futures resistance
symbols: emini = nqz9 / big contract = ndz9
1689.75-1691.00
1694.50-1695.00
1699.00-1700.50
1707.70-1708.00
December 2009 Nasdaq futures support
symbols: emini = nqz9 / big contract = ndz9
1678.00-1677.25
1674.00-1672.50
1666.50-1665.00
1658.00-1649.75
December 2009 Dow futures resistance
symbols: emini = ymz9
9738-9741
9761-9766
9803-9808
9836-9840
December 2009 Dow futures support
symbols: emini = ymz9
9705-9702
9682-9678
9632-9627
9578-9570
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REMINDER:
Real Time subscribers can view these updates on
the web at this site:
http://www.tradestalker.com/members
---------------------------
Good Trading,
Mike Reed
Copyright (c) 2009 by TradeStalker.com, Ft Wayne, IN.
TradeStalker Updates may not be redistributed without
permission.
www.TradeStalker.com
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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