TradeStalker's
R.B.I. Trader's Update
12 / 15 / 2009
(Published Since 1996)
...............................................
Dateline: 7:46 pm eastern time, 12/15/2009
The ES dropped to 1103.25 in the first 25 minutes of trading
on Tuesday and turned back up. That was at the second
support area at 1104.00-1103.50, and a rally to the 1109.50-
1110.25 resistance zone followed. The reversal there set up
a short, and the ES drifted down to 1104.00 support before
bouncing. However, the bounce couldn't clear the 1106.50-
1107.00 updated resistance area (1106.25 bounce high) and it
turned the ES back down. A drop of 6.00 points to 1100.25
followed, as the 1100.50-1099.75 zone was tested before a
bounce into the close.
On Tuesday the ES made its high at a good resistance zone,
and then in the last 15 minutes of stock trading it made a
low at a good support zone. The pullback put all of the
indicators back into neutral territory, backing out of short
term overbought levels with Tuesday's pullback. That should
make Tuesday's range important on the short term. If the low
areas from Tuesday are not held, then things could be
changing and a trip to the bottom of this range could then
be in the cards. If the highs from Tuesday are exceeded, and
not quickly reversed, then a breakout of the range on the
upside could occur.
We get the Fed decision on interest rate policy on Wednesday
at 2:15 pm. as long as the ES can hold the 1100.50-1099.75
area on an early pullback, then the market could rally into
the release. If there is a reversal from under the initial
resistance levels in the opening minutes of trading, then we
should see a quick, tradable, drop to test the Tuesday lows.
A reversal from near the 1100.50 level would then set up a
trade on the long side if it occurs in the first 40 minutes
of trading. If instead there is an early rally towards the
Tuesday high at the 1109.50-1110.25 area on the ES, and the
move stalls or is rejected, it should set up another
reversal.
Aside from that, if there is a trending move into the
release, the move is usually reversed around 2 pm or so.
After the Fed release, expect a quick back and forth move
(don't be surprised if it's bigger than a 6 point range as
we have been getting) and then after about 20 minutes a
trend should begin. That should make for a nice ride if the
timing is right. If there is a run up, beware of a reversal
when upside momentum fizzles. On a sharp drop, a reversal
back over the high of a low bar (2 or 5 minute chart) can
start a decent run up. If the market is not moving too fast,
I'll try to update in the Instant Messenger.
March 2010 SP futures resistance
symbols: emini = esh0 / big contract =sph0
1106.00
1109.50-1110.25
1114.00-1115.00
1118.50-1119.00
March 2010 SP futures support
symbols: emini = esh0 / big contract =sph0
1103.00-1102.50
1100.50-1099.75
1096.00-1094.75
1088.00-1087.00
March 2010 Nasdaq futures resistance
symbols: emini = nqh0 / big contract = ndh0
1802.50
1807.75-1808.50
1812.50-1813.25
1822.00-1823.00
March 2010 Nasdaq futures support
symbols: emini = nqh0 / big contract = ndh0
1794.50-1794.00
1790.50-1789.50
1784.25-1782.75
March 2010 Dow futures resistance
symbols: emini = ymh0
10416
10435-10438
10469-10473
10522-10528
March 2010 Dow futures support
symbols: emini = ymh0
10386-10381
10369-10365
10354-10350
During the day our subscribers are updated frequently in our
Instant Messenger Room. Each evening the log is uploaded,
CLICK HERE to read the log.
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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The foregoing has been prepared solely for informational
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research and data believed reliable, but there is no
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