TradeStalker's
R.B.I. Trader's Update
12 / 6 / 2009
(Published Since 1996)
...............................................
Dateline: 5:26 pm eastern time, 12/6/2009
The ES opened up more than 15 points on the Employment data
on Friday and kept going for about 20 minutes and then the
move stalled out. After a pullback from the 1119.00 yearly
high, the ES had trouble getting going again and unable to
clear 1116 resistance, the ES turned back down and sold off
to take out the Thursday lows before noon. Off of a 1095.25
low, the ES bounced back to 1105.75 where there was new
resistance, and the market rolled over again. The market
dropped down to test the morning lows, and the test was
passed as the market turned right back up, making a double
bottom in the process. The first bounce off of the double
bottom reversed at the 1102.00 level, but then after a small
dip the market turned back up and rallied into the close.
The futures had back to back outside days, as the volatility
is certainly picking up lately. Nonetheless, the SP500 is
still stuck in a trading range between 1111 and 1091 on a
closing basis. The ES settled about 3 points above fair
value on Friday, so there is follow through buying factored
in to Monday's open. Most of the short term gauges are in
neutral condition, and until the market gets out of this
trading range and sticks, a run up to the 1119-1121 area
will be a shorting opportunity, and a drop that holds around
the 1095 area should set up a trade on the long side. That
double bottom on Friday now is a key support area for all
three of the averages, and must be defended to avoid a drop
back towards the high 1080's on the ES on this leg down.
On Monday look for early strength to be sold, and then the
first decent pullback should set up a buying opportunity if
the market can hold the Friday lows, or quickly reverse if
they are broken. It will be a red flag if the initial
support is broken early in the day, and unless the market
quickly turns up from there, then we will likely see
Friday's lows tested again. Lately the market has gotten
hit, but continues to get back up and rally again. If we get
another day where the market gets hit, and it doesn't come
rallying right back, then things will be changing bigger
picture.
December 2009 SP futures resistance
symbols: emini = esz9 / big contract =spz9
1108.00-1108.50
1112.25-1113.00
1115.50-1115.75
1119.50-1121.00
December 2009 SP futures support
symbols: emini = esz9 / big contract =spz9
1102.50-1102.00
1098.75-1098.25
1095.50-1095.00
1088.25-1087.50
December 2009 Nasdaq futures resistance
symbols: emini = nqz9 / big contract = ndz9
1795.50-1796.50
1802.00-1803.50
1807.75-1808.50
1816.25-1818.00
December 2009 Nasdaq futures support
symbols: emini = nqz9 / big contract = ndz9
1789.75-1789.25
1783.50-1783.00
1774.00-1772.75
1765.00-1763.75
December 2009 Dow futures resistance
symbols: emini = ymz9
14000-10403
10452-10456
10490-10494
10511-10519
December 2009 Dow futures support
symbols: emini = ymz9
10362-10358
10337-10334
10302-10297
10234-10230
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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
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The foregoing has been prepared solely for informational
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