TradeStalker's
R.B.I. Trader's Update
11 / 11 / 2009
(Published Since 1996)
...............................................
Dateline: 6:41 pm eastern time, 11/11/2009
The market gapped up into new high territory for the year on
Wednesday, and after a quick dip from 1098.75 to 1095.25,
the ES headed on up to the 1102.50-1104.00 resistance zone.
The move stalled out, then reversed and a selloff was in
gear. The 1093.00-1092.50 area was given for the key
support, and the move was reversed from 1092.25 and a decent
bounce followed. It didn't stick though, and the market
dropped back to test the early lows. They were barely
broken, and then the market quickly reversed back to the
upside. The market was able to hold together and the ES
rallied back to the 1097.50 level again by the close.
Both Monday and Wednesday had gap up opens, as the buying is
piling on. The ES has reacted to good resistance zones on
the way up, but then the updated support areas would hold
and the upside then continues. A case in point was on
Wednesday. Even though the ES nailed and reversed from a
good resistance zone at the 1102.50-1104.00 area, it held
really close to the 1092.50 support and quickly reversed and
then the market finished the day on an up note.
The intermediate term internal gauges began to turn up a few
days ago... which is odd near a new high. The short term
gauges reached extreme overbought readings, and with the
market mostly resting the last 2 days most are back to
neutral. Up at these areas, the market should be at a key
juncture short term. It looks like another pullback must
find good buying no lower than the 1091.25 Wednesday low on
the ES. If that area is not defended, then there is
something different going on, and then the bounces would set
up shorting opportunities. It could cause something that gets
momentum if everyone tries to squeeze out of the exit door at
the same time.
Last night I said we were getting the Initial Claims and
Continuing Claims before the Wednesday opening. I was a day
early on that. We will get that data at 8:30 am, before the
Thursday open for stocks. Look for early strength that
reverses in the first 20-40 minutes to set up a shorting
opportunity. If that plays out, then the first decent
pullback must stay over the 1091.25 level on the ES and the
1770.75 level on the NQ, along with the 10246 reversal level
on the Dow cash. If those are broken, then odds that the
bounces will not stick will increase. If that occurs, then
bounce that then stalls out around the 1093-1094 area could
set up a good shorting opportunity.
December 2009 SP futures resistance
symbols: emini = esz9 / big contract =spz9
1097.50-1098.00
1102.50-1104.00
1108.25-1109.00
December 2009 SP futures support
symbols: emini = esz9 / big contract =spz9
1091.25
1089.00-1088.50
1085.50-1085.00
1080.50-1079.75
1074.50-1074.00
December 2009 Nasdaq futures resistance
symbols: emini = nqz9 / big contract = ndz9
1785.00-1785.50
1791.50-1792.50
1798.75-1799.50
December 2009 Nasdaq futures support
symbols: emini = nqz9 / big contract = ndz9
1770.75
1768.50-1767.00
1763.00-1762.25
1752.50-1751.50
1742.00-1740.75
December 2009 Dow futures resistance
symbols: emini = ymz9
10267-10270
10307-10312
10351-10357
December 2009 Dow futures support
symbols: emini = ymz9
10211
10198-10193
10165-10162
10114-10108
10041-10037
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Good Trading,
Mike Reed
TradeStalker.com
Copyright (c) 2009 by TradeStalker.com, Ft Wayne, IN.
TradeStalker Updates may not be redistributed without
permission.
This publication's primary focus is trading the index
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trade the following ETF's (SPY), (QQQQ), (SDS), (QID),
(DIA), and (DOG)
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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
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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
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