TradeStalker's
R.B.I. Trader's Update
11 / 19 / 2009
(Published Since 1996)
...............................................
Dateline: 6:02 pm eastern time, 11/19/2009
The ES broke the key 1101.25-1100.75 zone on the open on
Thursday and that caused a rush to get out and the ES
dropped to 1086.50, right in the 1086.75-1086.25 support
zone, then turned back up. The updated resistance at
1091.50-1093.00 gave us a couple of nice shorts. The first
was a 4 point drop from 1092.00 to 1088.00, and the next was
3.50 points from 1091.75 to 1088.25. A third reversal from
1093.25 had 3 points of opportunity as the ES dropped to
1090.25 before finally breaking out over that resistance.
The run-up took the ES to 1095.25 and then the futures
dropped into their close.
The market broke down from its high level trading range, and
the result was a sharp selloff on Thursday. With the futures
under pressure before the open on Thursday, the talking
heads on CNBC were unanimously bullish and that was a first
in many months for that. It looks like the upside is very
limited in my work, and now odds of bigger trouble goes up.
The good news is that the market made a nice turn and a
pretty good rally from the 1086.75-1086.25 support zone.
That will need to hold on Friday, or the weekly chart will
not look good at all.
The market should continue to be a better short on the
bounces that stall out/ reverse. The internal gauges are
just coming off a very overbought short term status. The Vix
never did make a new low when the SP500 and Dow made new
highs this week. It turned up on Thursday, and that gave one
Vix sell signal. Since the ES broke that 1100.75-1100.25
zone, the market doesn't look good on a daily chart. There
is still a gap down between the 1074.00 and 1067.75 area,
but that's quite a bit lower than the market is now. If the
Thursday low area is not held, then a trip towards the
1083.00-1082.50 area could be in the cards. If the market
acts as it has for most of the year, a reversal from that
area would set up a decent bounce. If that doesn't happen,
then we could be on the way towards the 1074 area.
December 2009 SP futures resistance
symbols: emini = esz9 / big contract =spz9
1095.00-1095.50
1100.25-1100.75
1105.00-1105.50
1108.50-1109.25
December 2009 SP futures support
symbols: emini = esz9 / big contract =spz9
1091.00-1090.50
1086.75-1086.25
1083.00-1082.50
December 2009 Nasdaq futures resistance
symbols: emini = nqz9 / big contract = ndz9
1775.00-1775.50
1780.00-1781.25
1788.75-1790.00
1793.75-1795.50
December 2009 Nasdaq futures support
symbols: emini = nqz9 / big contract = ndz9
1766.00-1765.50
1761.00-1759.50
1755.00-1754.50
December 2009 Dow futures resistance
symbols: emini = ymz9
10329-10333
10361-10365
10386-10389
10406-10410
December 2009 Dow futures support
symbols: emini = ymz9
10290-10286
10236-10233
10197-10193
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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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