TradeStalker's
R.B.I. Trader's Update
11 / 2 / 2009
(Published Since 1996)
...............................................
Dateline: 6:08 pm eastern time, 11/2/2009
The market opened higher on Monday, and after a quick
pullback from 1040.50 to 1034.00 the market reversed back up
and rallied nicely. However, after reaching 1049.50 the
market started to act toppy, and it rolled over and sold off
fast once the downside started. A steady trend down to
1026.00 was reversed and a decent bounce followed. That move
fizzled out after reaching 1035.00 on the ES and the market
fell again to test the lows. A double bottom was made at
1026.00 on the ES and the market rallied back. Updated
resistance at 1037.50-1038.50 was nailed, then a 5+ point
drop from 1037.50 to 1032.25 followed. A bounce to 1037.00
reversed and the ES dropped 5.50 points to 1031.50 with
about 30 minutes left, then buying/ short covering came in
and the market rallied into close.
There was really good movement in both directions on Monday.
Those Monday lows might have been the lows for a few days,
but the early action should be telling on Tuesday. There was
a potential rising wedge forming going into the Monday
close. A break below the 1032.00-1031.50 area would set up a
short on the bounce that follows. However, if that area is
held then the upside should continue.
In any case, at the moment the market looks like it might go
into a trading range, and the volatility should continue.
The internal gauges are just coming out of oversold
territory, but the Vix gave 4 buy signals at Monday's close.
The fact that the bulls made a good stand at the 1026 level
was a plus also. If the Monday lows on both the ES and YM
are broken, then a drop towards the 1015.00-1014.00 area
would be a test of what should be a major support zone,
unless this is more than just a decent correction.
On Tuesday look to short early strength that reverses, and
then if the market obliges look for the first decent
pullback to set up a buying opportunity if the 1032.00-
1031.50 area on the ES is reversed. If that is not quickly
reversed, then the Monday double bottom at 1026 will be in
jeopardy.
December 2009 SP futures resistance
symbols: emini = esz9 / big contract =spz9
1040.00-1041.00
1046.50-1047.25
1049.50
1050.75-1051.50
December 2009 SP futures support
symbols: emini = esz9 / big contract =spz9
1032.00-1031.50
1026.50-1026.00
1022.00-1020.50
1015.00-1014.00
December 2009 Nasdaq futures resistance
symbols: emini = nqz9 / big contract = ndz9
1672.75-1673.75
1682.00-1682.75
1687.75
1689.25-1690.50
December 2009 Nasdaq futures support
symbols: emini = nqz9 / big contract = ndz9
1660.50-1659.75
1650.50-1649.75
1644.25-1643.50
1637.75-1636.25
December 2009 Dow futures resistance
symbols: emini = ymz9
9746-9750
9792-9796
9812
9820-9825
December 2009 Dow futures support
symbols: emini = ymz9
9678-9675
9636-9632
9589-9585
9521-9518
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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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