TradeStalker's
R.B.I. Trader's Update
11 / 23 / 2009
(Published Since 1996)
...............................................
Dateline: 6:14 pm eastern time, 11/23/2009
The ES gapped up 12+ points on Monday and kept on going
higher for about 40 minutes. The ES tested the 1112.25 high
from last Monday, but fell just shy at 1111.50 before the
move fizzled out. From there, the market went into trend
down mode into late afternoon. The bounces all failed at, or
just under, the 1105.75 resistance level, and the low was
made with about 25 minutes left in stock trading. The ES
reached 1101.25 and then bounced back to 1105.00 and backed
off a bit into the close.
On Tuesday we will get the GDP and Consumer Confidence
numbers before the open, then the FHFA Home Price Index 30
minutes into the day, and finally the Fed Minutes at 2 pm
eastern time. While the Dow was able to post new yearly
highs both intraday and on the close, at the moment we have
a double top on the SP500 cash and futures. The bounces are
probably not going to stick, as buyers back off near new
high territory and longs quickly try to lock in a profit.
Even though the SP500 closed up almost 15 points on Monday,
the short side was the better side to trade after the early
action was done. That should be the case again on Tuesday.
Look for an early reaction to the economic data to set up a
reversal trade in the early going. If the market opens
lower, the ES will need to reverse from the 1101.25-1100.50
zone, otherwise the market could repeat last week's action
by heading lower for a few days. If the 1111.50-1112.25 area
is tested again, it should be reversed quickly if that is
going to be a top. If the market blows through that area
without trouble, then a squeeze towards the 1117.50-1118.00
area on the ES could be in the cards before the move is
reversed. If that occurs, then a pullback would need to hold
at the 1112.00-1111.50 area and turn back up to avoid
trouble. If the market happens to trade like that, and then
breaks down through that 1112.00-1111.50 area, then a bigger
reversal is occurring and a drop could be a very fast one in
thin conditions.
December 2009 SP futures resistance
symbols: emini = esz9 / big contract =spz9
1105.50-1106.00
1108.75-1109.25
1111.50-1112.25
December 2009 SP futures support
symbols: emini = esz9 / big contract =spz9
1101.25-1100.50
1098.25-1097.75
1095.25
1093.00-1092.50
1088.50-1088.00
December 2009 Nasdaq futures resistance
symbols: emini = nqz9 / big contract = ndz9
1792.50-1793.00
1796.75-1797.50
1801.75-1803.00
December 2009 Nasdaq futures support
symbols: emini = nqz9 / big contract = ndz9
1785.75-1785.25
1780.50-1779.75
1774.00
1769.75-1768.75
1760.50-1759.75
December 2009 Dow futures resistance
symbols: emini = ymz9
10438-10441
10477-10480
10498-10502
December 2009 Dow futures support
symbols: emini = ymz9
10402-10397
10380-10377
10352
10336-10331
10286-10283
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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
futures. However, you can also use my nightly updates to
trade the following ETF's (SPY), (QQQQ), (SDS), (QID),
(DIA), and (DOG)
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Disclaimer
The financial markets are risky. Investing is risky.
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
contracts in the TradeStalker Updates specify a manner
in which you could trade. We occasionally mention the
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
and Nasdaq futures markets. The risk of loss in futures
is substantial. You can lose more than your original
investment. We are not Registered Investment Advisors or
Commodity Trading Advisors.
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