TradeStalker's RBI Update 11/04/09

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TradeStalker's

R.B.I. Trader's Update

11/ 4 / 2009

(Published Since 1996)

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Dateline: 6:18 pm eastern time, 11/4/2009

The gap up open at the 1051.50-1052.25 resistance set up an
early short on Wednesday. The ES turned down from 1052.25
and dropped 4.50 points to 1047.75. The upside then resumed
and the ES rallied to 1057.50 before it stalled and rolled
over. We were then looking for a pullback to 1051.50-1051.00
to be key support, and a pullback reversed from 1051.50 and
then bounced 2.50 points to 1054.00 before stalling out in
front of the Fed release. After the release there was a
pop-and-drop to 1046.00 on the ES that lasted about 15
minutes, and then the market turned back up. A sprint to
1058.50 stalled out and the ES backed off, but when the 1053
level was cut through the second time the downside picked up
steam. A plunge to 1041.50 easily filled the gap and then
the market firmed into the close.

We had more good volatility to trade on Wednesday as we
expected. After getting extremely oversold late last week,
and then getting 4 buy signals from the Vix on the Monday,
the market put together a decent oversold rally. It lasted 3
days so far, and it that looks to be over for now. Most of
the overbought/oversold gauges have gone into neutral. In
addition to that, the market is losing upside momentum. The
SP500 cash closed up 6.69 points on Monday, closed up 2.53
points, and closed 1.09 points on Wednesday. At best it
looks like a trading range. At worst, the downside could
gather steam and head towards the 1016-1014 area on the
SP500 cash to see if it can hold what appears to be
important support.

The market has not been able to hold on to its gains, so on
Thursday look for early strength to be sold. If there is an
early pop up to the 1051.75-1052.50 area on the ES and it
reverses, that would be a good entry. If the market can not
bounce that much, it means it is weak and the downside
should be in gear. IF somehow the market tests the Wednesday
highs, it should be an easy short barring some extraneous
news event. On the downside, a break of the Wednesday low
areas would mean a test of the 1036.75-1036.25 area, and
that area will need to defended to avoid a bad day for
the bulls.



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

1051.75-1052.50
1058.00-1058.50
1062.75-1064.00
1071.50-1072.25 **major


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

1042.00-1041.50
1036.75-1036.25
1031.50-1030.75
1026.50-1026.00


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

1693.75-1694.50
1699.25-1700.00
1705.75-1706.50

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

1676.75-1676.00
1672.00-1670.75
1658.75-1658.00
1652.00-1650.25

December 2009 Dow futures resistance
symbols: emini = ymz9

9832-9839
9884-9888
9924-9932

December 2009 Dow futures support
symbols: emini = ymz9

9740-9736
9683-9679
9656-9654
9634-9632


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Good Trading,
Mike Reed

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Past performance does not guarantee future performance.
The foregoing has been prepared solely for informational
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research and data believed reliable, but there is no
guarantee that future results will be profitable.

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SP500 and Nasdaq futures markets because it is
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This is not an endorsement or recommendation of the SP500
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is substantial. You can lose more than your original
investment. We are not Registered Investment Advisors or
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