TradeStalker's
R.B.I. Trader's Update
12 / 17 / 2009
(Published Since 1996)
...............................................
Dateline: 6:29 pm eastern time, 12/17/2009
The market opened lower on Thursday, and after a small
bounce off of the 1096.00 support failed at 1098.50, the
downside reasserted itself. The ES fell to 1093.25 in the
first 40 minutes and the market bounced back. The move was
weak and grudgingly higher into the late morning. The upside
couldn't stick, and the ES rolled over from 1098.50 to a
lower low at 1090.75 an then the move was reversed. A bounce
lasted until the ES reached 1096.50, reversing at the 60ema
on the 5 minute chart, and then stocks and futures dropped
into the 4 pm close for stocks. The futures rallied in the
last 15 minutes and settled well over fair value.
Friday is a quarterly expiration day, and about anything can
happen. The market is still in this compressed trading
range, and on Thursday the market fell to about the middle
of that range. The closing Trin was at 3.01 which is
normally seen at decent trading bottoms. Also, the
sentiment shifted in a flash, as the Vix jumped 9.6% on
Thursday.
On Friday we should get a two-sided trading day. Early
strength that stalls/reverses near the initial resistance is
a shorting opportunity. However, the market will be "okay"
as long as the initial support areas are held, so if there
is an early drop it could set up a buying opportunity as
long as that support is held. The ES made a double bottom at
the 1091.00-1090.75 area on Thursday, and the NQ held just
over the 1775 level for most of Thursday. If those areas are
not quickly reversed on a test, then the market could be
breaking down. On the upside, a rally back towards the
1098.50-1099.00 area on the ES needs to be watched for a
reversal. If the market is able to put together a good
rally, but the move stalls out near the 1102.50-1103.0 area,
or that area is rejected on a sprint higher, it should set
up a good shorting opportunity.
March 2010 SP futures resistance
symbols: emini = esh0 / big contract =sph0
1096.00-1096.50
1098.50-1099.00
1102.50-1103.00
March 2010 SP futures support
symbols: emini = esh0 / big contract =sph0
1091.25-1090.75
1088.00-1087.00
1081.50-1080.50
March 2010 Nasdaq futures resistance
symbols: emini = nqh0 / big contract = ndh0
1787.00-1788.00
1792.00-1792.50
1796.75-1798.50
March 2010 Nasdaq futures support
symbols: emini = nqh0 / big contract = ndh0
1775.50-1774.50
1770.25-1769.00
1762.50-1761.00
March 2010 Dow futures resistance
symbols: emini = ymh0
10292-10295
10309-10312
10361-10366
March 2010 Dow futures support
symbols: emini = ymh0
10249-10245
10211-10208
10152-10147
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Good Trading,
Mike Reed
Copyright (c) 2009 by TradeStalker.com, Ft Wayne, IN.
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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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