TradeStalker's
R.B.I. Trader's Update
4 / 7 / 2010
(Published Since 1996)
...............................................
Dateline: 6:46 pm eastern time, 4/7/2010
After a lower open, the ES bounced to Tuesday's late low and
then turned back down. A drop down from 1185.00 to 1178.75
followed, and then a decent bounce started. The ES rallied
to the 1186.00-1186.50 initial resistance zone before
reversing. I suggested buying some puts via instant message
(they were cheap!) with the ES around 1185 and that is
working well so far. The break of the 1181.50 level
triggered more selling as the ES dropped steadily to a
1973.25 level, just under the 1174.75-1174.00 support. Short
covering and buyers stepping in caused a reversal in the
last hour, but the market closed just under good resistance
areas.
The internal gauges are still slightly overbought, but the
pullback on Wednesday erased that for the most part. Bigger
picture, the market looks like it topped for awhile. The
only way it gets out of trouble short term is by getting
over the 1186.00-1186.50 area and not quickly reversing. If
that occurs, which is a long-shot, then will have one more
push higher towards the 1220-1225 area before a nose dive
lower.
On Wednesday look for early strength to set up a good
shorting opportunity, especially if the initial resistance
zones are reached and reversed. If that plays out, then a
drop to test the Tuesday lows will need to be defended by
the bulls. If that 1173.25-1172.50 area on the ES is not
held, then it could be on the way towards the 1165.25-
1164.25 area. If the initial resistance is not cleared and
then there is a drop to that 1165.25-1164.25 area, then a 6-
7 point bounce from the low is likely before a bounce
fizzles and reverses.
June 2010 SP futures resistance
symbols: emini = esm0 / big contract =spm0
1180.50-1181.50 **pivotal
1084.50-1085.00
1186.25
1188.00-1189.00
June 2010 SP futures support
symbols: emini = esm0 / big contract =spm0
1173.25-1172.50
1168.75-1168.25
1165.25-1164.25 **major
1161.25-1160.50
June 2010 Nasdaq futures resistance
symbols: emini = nqm0 / big contract = ndm0
1976.50-1977.50 **pivotal
1981.25-1982.00
1984.50
1986.50-1987.50
June 2010 Nasdaq futures support
symbols: emini = nqm0 / big contract = ndm0
1964.25-1963.75
1956.25-1955.25
1952.50-1952.25 **major
1942.00-1940.75
June 2010 Dow futures resistance
symbols: emini = ymm0
10860-10864 **pivotal
10893-10896
10910
10928-10932
June 2010 Dow futures support
symbols: emini = ymm0
10791-10787
10753-10749
10730-10727 **major
10694-10690
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---------------------------
Good Trading,
Mike Reed
Copyright (c) 2010 by TradeStalker.com, Ft Wayne, IN.
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permission.
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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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