TradeStalker's
R.B.I. Trader's Update
12 / 16 / 2009
(Published Since 1996)
...............................................
Dateline: 6:26 pm eastern time, 12/16/2009
The market opened higher on Wednesday and the initial thrust
reversed from 1109.75, but a quick pullback held the 1108.00
low and then the ES pushed up to 1111.75 just before noon. A
pullback held at 1108.25 just before the Fed release, and
then after the release there was an up-down-up pattern per
usual. The ES bounced to 1109.25 after the initial pop-and-
drop, which was at updated resistance, and it stalled before
reversing and heading back down. The ES reached the 1103.00-
1102.50 support zone with 30 minutes left in stock trading,
and then the market firmed a bit into the close.
The market is still locked in a trading range. The
indicators are still neutral, however the Vix dropped over
4% on Wednesday and is close to its low for the last year
and a half. If it drops a bit more on Thursday, and then
reverses back up, that would give several sell signals. The
way the market continues to act - unable to hold gains while
churning near the highs for the year - is making the short
side the better side to trade at this time. Unless there is
a breakout over both the 1111.00-1112.00 area on the ES
*and* the 1807.75-1809.00 area on the NQ, and it isn't
quickly reversed, then the market will remain vulnerable and
could drop sharply if the ES cannot hold the 1096.00-
1094.75 zone on Thursday. If the bulls don't hold the market
there, and turn it back up quickly, then a trip to the 1088-
1087 area is likely, and a test of the 1081-1080 major
support at the bottom of the range would have a chance of
being tested.
On Thursday we get the Initial Claims before the open, and
then we get the Leading Indicators and Philly Fed releases
30 minutes into the day. If there is early strength, it
should set up a very good shorting opportunity, especially
if the 1107.25 area or just below is reached in the opening
15 minutes of trading. If that plays out, and the 1103.00-
1102.50 area is broken, then a top of some sort should be in
place for awhile. The 1100.50-1099.75 area would need to be
reversed, otherwise the market is in for a trip towards the
1096.00-1094.75 zone and potentially quite a bit more.
March 2010 SP futures resistance
symbols: emini = esh0 / big contract =sph0
1107.25
1111.50-1112.00
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
1803.25
1807.75-1809.00
1812.50-1813.25
1818.00-1818.50
March 2010 Nasdaq futures support
symbols: emini = nqh0 / big contract = ndh0
1796.50-1796.00
1790.50-1789.50
1784.25-1782.75
March 2010 Dow futures resistance
symbols: emini = ymh0
10399
10448-10452
10469-10473
10522-10528
March 2010 Dow futures support
symbols: emini = ymh0
10367-10364
10354-10350
10329-10324
During the day our subscribers are updated frequently in our
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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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(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
guarantee that future results will be profitable.
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This is not an endorsement or recommendation of the SP500
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