TradeStalker's RBI Update 11/10/09

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TradeStalker's

R.B.I. Trader's Update

11/ 10 / 2009

(Published Since 1996)

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Dateline: 6:19 pm eastern time, 11/10/2009

We came into Tuesday expecting a two sided day with a
downside bias. We were also alert for a reversal from
initial support, and the ES opened lower and then turned up
from 1 tick above the 1087.50-1087.00 initial support. The
ES ran up 6.75 points to 1094.50 and then reversed. That set
up the short side, and the first bounce reversed from just
under updated sell zone and went to a 1085.00 low. The first
bounce to 1089.00 was rejected and a little double bottom
was made at 1086.25 then the ES bounced again. The move
fizzled and reversed from 1093.25, setting up a short, and
the ES dropped to 1089.00. That was right at new key support
at the 1089.00-1088.50 area and the market firmed into the
close.

The indicators have backed out of the extreme overbought
status they were in, but if the Vix reverses and the initial
support is not held on Wednesday, the market could get hit
with a decent sized selloff. The market was weak in the
early going on Tuesday, but then found a comfort area and
rallied back. The 1089.00-1088.50 area on the ES offered
resistance on the bounces after the early drop on Tuesday.
Then, when the 1088.50-1089.00 area was broken, that area
held on the 2 pullbacks so it should be pivotal early on
Wednesday.

At the moment the market looks pretty strong. However, we
get the Initial Claims and Continuing Claims before the open
on Wednesday. If these numbers don't meet expectations, then
the market could get hit fairly hard. If there is a pop up
open that reverses from 1093.50-1094.25 area on the ES, then
a drop to the 1089.00-1088.50 could be underway. If the
market is still strong and in good shape, then that initial
support should hold. If a pullback is sharp, and cuts
through the initial support, then the trends could be
rolling over. If the ES gets over the 1094.50 level and
isn't reversed, then the ES still needs to get over 1098.50
to make a new high on this leg up. If the market is not
making a double top, and the 1098.50 area is exceeded, then
the 1102.50-1104.00 could be seen before there is another
top put in place.

NOTE: Due to a doctors appointment there will not be any
intraday updates after 12 noon eastern time.

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

1093.50-1094.25
1098.00-1098.50
1102.50-1104.00


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

1089.00-1088.50
1085.50-1085.00
1080.50-1079.75
1074.50-1074.00
1068.00-1067.75


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

1775.75-1777.25
1784.25-1785.00
1790.50-1791.50

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

1767.00-1768.50
1763.00-1762.25
1752.50-1751.50
1742.00-1740.75


December 2009 Dow futures resistance
symbols: emini = ymz9

10227-10232
10245-10250
10295-10299


December 2009 Dow futures support
symbols: emini = ymz9

10198-10193
10165-10162
10114-10108
10041-10037

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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
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