Sunday, November 08, 2009

TradeStalker's RBI Update 11/03/09

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TradeStalker's

R.B.I. Trader's Update

11 / 3 / 2009

(Published Since 1996)

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Dateline: 6:44 pm eastern time, 11/3/2009


The market opened lower on Tuesday but the weakness was
reversed and the ES rallied from 1030.75 to 1040.50 just
over 30 minutes into trading. That was at the 1040.00-
1041.00 initial resistance, and the market dropped down to
test the lows. The ES made a double bottom pattern off of
1031.00 and then bounced to 1036.25 updated resistance. A
pullback followed but then the ES was reversed from 1032.00
and then it shot higher. A sprint to 1041.50 fizzled out,
then the ES pulled back to test the 1036.50 new support.
That held and a rally up to 1043.00 followed. That level was
quickly rejected, and with that resistance being a bit too
much, the ES fell back to the 1036.50 area with an hour
left. The market churned just over that level until 3:30,
and then the market turned up and made a run up to test the
highs. That pop lasted 5 minutes as the move fizzled and
reversed from 1042.75, then dropped 3.50 points to 1039.25
before churning into the close.

The market gave us some good swings in both directions on
Tuesday. Wednesday is a Fed Release day, and the volatility
isn't going to dry up now. For the most part, the short term
internal gauges have moved out of deep oversold territory.
Also, the downside momentum let up some, with the averages
making inside days on Tuesday.

On Fed days, if there is a trending market going into the
2:15 pm release, then that trend is usually reversed. On
Wednesday the market will be in decent shape as long as the
1036.75-1036.25 area on the ES and 1672.00-1670.75 area on
the NQ are broken. If those are broken, then the uptrends
will roll over and the 1026.50-1026.00 area, or lower, could
be in the cards before another decent reversal occurs. If
those are held, then a rally should have trouble with the
1049.00-1049.50 area if the market is still weak. After the
Fed release, there tends to be a quick "shake and bake"
where the market moves down then up quickly, however a trend
should develop after 15-20 minutes and make a good move into
the last 30 minutes or longer.



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

1042.75-1043.25
1049.00-1049.50
1051.50-1052.25


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

1036.75-1036.25
1031.50-1030.75
1026.50-1026.00


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

1677.00-1677.75
1686.50-1687.75
1690.50-1691.50


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

1672.00-1670.75
1658.75-1658.00
1652.00-1650.25


December 2009 Dow futures resistance
symbols: emini = ymz9

9736-9739
9792-9796
9820-9825


December 2009 Dow futures support
symbols: emini = ymz9

9683-9679
9656-9654
9634-9632


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Good Trading,
Mike Reed

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