TradeStalker's
R.B.I. Trader's Update
4 / 6 / 2010
(Published Since 1996)
...............................................
Dateline: 6:36 pm eastern time, 4/6/2010
The ES reversed from the 1177.50-1176.75 support zone just
before stocks opened on Tuesday, and then from a 1178.25 low
on the open, a bounce to the 1184.50-1186.00 initial
resistance zone was reached. From 1184.50, the ES only
pulled back to the 1182.25 updated support, and then it
broke/held 1184.50 on the way to 1188.00. That was straight
up, and it reversed and fell back to new support at 1184.50
by the 4pm close for stocks. The ES finished on an upswing
while the NQ ended on a downswing as the market ended the
day a bit mixed.
My short term indicators are at overbought extremes. Also,
the Vix went to its lowest level since the fall of 2007. The
Dow cash just missed the 11k mark on Tuesday, and that may
need to wait for a bit. If the initial support areas are
broken on Wednesday, then a steeper drop should be in the
cards.
If there is a decent pullback, it will need to hold around
the 1177.50-1176.75 zone on the ES. If that area is not
reversed, then more than just a pullback is underway. A
decent sized drop could go for the 1174.75-1174.00 zone if
we have a normal pullback. If the market gets down there,
and is not reversed, then the 1167-1166 area would be a
major support zone short term.
So, if there is early strength and there is a test of the
Tuesday highs, or a lower high than the Tuesday highs and
the move reverses then it should set up a good shorting
opportunity. If the market obliges and we drop through the
initial support areas, then pressure should be on. The
1182.50-1082.00 would need to be quickly reversed if tested,
otherwise that 1177.50-1176.75 zone on the ES could be a
magnet to pull the market down.
June 2010 SP futures resistance
symbols: emini = esm0 / big contract =spm0
1186.00-1186.50
1188.00
1189.25-1190.25
1193.50-1194.00
June 2010 SP futures support
symbols: emini = esm0 / big contract =spm0
1184.50
1182.50-1082.00
1177.50-1176.75
1174.75-1174.00
1170.50-1170.00
June 2010 Nasdaq futures resistance
symbols: emini = nqm0 / big contract = ndm0
1981.00-1982.00
1985.75
1987.50-1988.50
1994.50-1995.25
June 2010 Nasdaq futures support
symbols: emini = nqm0 / big contract = ndm0
1977.50
1973.75-1973.00
1966.25-1965.50
1962.50-1961.75
June 2010 Dow futures resistance
symbols: emini = ymm0
10917-10920
10927
10941-10944
10964-10968
June 2010 Dow futures support
symbols: emini = ymm0
10904
10896-10892
10880-10877
10864-10860
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---------------------------
Good Trading,
Mike Reed
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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
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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
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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
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