Sunday, November 08, 2009

TradeStalker's RBI Update 11/05/09

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TradeStalker's

R.B.I. Trader's Update

11 / 5 / 2009

(Published Since 1996)

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Dateline: 7:02 pm eastern time, 11/5/2009

The ES opened at the 1051.75-1052.50 resistance on Friday,
and from 1052.50 it dropped 3 points to 1049.50 before
turning back up. The rally reached 1058.50, our 2nd
resistance was 1058.00-1058.50, and the ES dropped 3 points
to 1055.50 and turned back up. The bounce stalled out after
reaching 1062, and we were short but looking for a bounce.
That bounce took out 1060.50 and ran to the 1063-1064 key
area. The move reached the 1063.00, then reversed and
dropped 4.75 points to key support at 1058.25. A bounce to
1063.75 reversed, giving a good re-entry on the short side,
and the ES dropped 3.50 points to 1060.25 with 15 minutes
left in stock trading. The ES then ran up to 1064.00 in the
final minutes and backed off a bit before the close.

We get the Employment data before the open on Friday. At the
moment most everything is neutral to nearing overbought
status. The very short term internal gauges are getting
close to an overbought status. The sentiment is getting
bullish in a hurry. Vix dropped over 8% on Thursday. Lastly,
the ES reached a good resistance zone at 1063-1064 on 3
occasions on Thursday. The first 2 lead to pullbacks, then
the ES ended the day in that zone.

That said, no damage is done as long as the initial support
can hold. If it does not, then a decent pullback / selloff
could occur. So look for opportunities on both sides unless
the market gets into a trend down phase. If the ES falls
towards the 1058.50-1058.00 area and cannot quickly reverse,
then a decent sized pullback could occur.

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

1064.00
1067.75-1068.25
1071.50-1072.25 **major
1076.75-1078.00


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

1060.50-1060.00
1058.50-1058.00
1050.50-1049.50
1042.00-1041.50


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

1722.00
1728.00-1729.00
1734.00-1735.00 **major
1739.25-1740.50


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

1712.00-1711.25
1708.25-1707.50
1700.00-1699.25
1691.75-1690.50


December 2009 Dow futures resistance
symbols: emini = ymz9

9970
10004-10007
10034-10038 **major
10080-10085


December 2009 Dow futures support
symbols: emini = ymz9

9941-9938
9916-9913
9838-9832
9740-9736


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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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