TradeStalker's
R.B.I. Trader's Update
11 / 29 / 2009
(Published Since 1996)
...............................................
Dateline: 5:26 pm eastern time, 11/29/2009
On Friday the ES gapped down 30.25 points from Wednesday's
close, and opened right at the 1078.00-1077.50 support zone.
Shorts took cover (put options exploded on the open for a
nice percentage gain) and new buying came in and the market
went into a trend-up move until around 11 am. After the ES
reached 1098.25, it pulled back to 1091.00 and then the
market turned up again. However, the move fizzled/reversed
at 1097.25, and with that being good resistance the market
sold off into the close.
Last Tuesday night, with the market trading near its highs,
I stated :
"Just be careful holding a trade on the long side
for very long. The way the market is acting, it
could give back a week's worth of gains in a few
hours."
The Wednesday session was quiet, but the ES really struggled
around the 1110 level. Then when the news broke that another
bank was in trouble, that was the straw that broke the
bull's back, and was the impetus for a very sharp drop. The
market turned up from a decent support area on Friday, and
then the ES rallied back 20 points. That was a very nice
bounce, so a test of that area should hold unless we have a
panic selloff. If the market cannot hold on a test of the
Friday lows, a trip towards the 1068.50-1067.75 area or
lower could be in the cards.
On Monday look for early strength that fails under the
initial resistance to set up a shorting opportunity. If that
plays out, or there is early weakness that reverses near the
1083.00-1082.50 area, it could set up a buying opportunity.
If that area isn't held, then the Friday lows should be
tested before a reversal attempt. For now, the bounces are
better shorting opportunities unless a test of the Friday
lows is reversed.
December 2009 SP futures resistance
symbols: emini = esz9 / big contract =spz9
1097.50-1098.25
1102.50-1103.25
1108.50-1109.00
December 2009 SP futures support
symbols: emini = esz9 / big contract =spz9
1088.25-1087.50
1083.00-1082.50
1078.00-1077.50
1068.50-1067.75
December 2009 Nasdaq futures resistance
symbols: emini = nqz9 / big contract = ndz9
1778.50-1779.75
1785.50-1786.50
1794.25-1795.00
December 2009 Nasdaq futures support
symbols: emini = nqz9 / big contract = ndz9
1758.25-1757.75
1751.50-1751.00
1743.00-1741.75
December 2009 Dow futures resistance
symbols: emini = ymz9
10364-10367
10398-10402
10447-10451
December 2009 Dow futures support
symbols: emini = ymz9
10282-10278
10247-10242
10207-10202
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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.
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PO Box 9783, Ft Wayne, IN, 46899
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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