TradeStalker's
R.B.I. Trader's Update
4 / 18 / 2010
(Published Since 1996)
...............................................
Dateline: 5:27 pm eastern time, 4/18/2010
We came in to Friday expecting a decent sized drop,
potentially to the 1192.50-1191.50 zone. The ES had a gap
down open, and that was bought and the ES bounced to 1206.00
and stalled/ reversed. That was at the updated resistance
and then the ES dropped to 1200.00 and bounced back. A
double top at 1206 resistance gave us the drop to the
1192.50-1191.50 zone before any kind of bounce occurred. We
stayed with the short side, and the ES dropped to 1184.50
before reversing with a bit of gusto. After getting to
1193.50, the ES pulled back and then reversed from just
under the 1188.50 support, but made a double top at 1193.50
before the close.
The volatility surely picked up on Friday. The breakdown
appears to be the start of something more on the downside.
The only fly in the ointment is that, just 1 day off of a
new high for the year, there were signs of panic selling
that normally shows up near lows. The Vix closed up 15% on
Friday, after having been about 23% higher intraday. Also,
the closing Trin was at 3.15.
This should set up some two-sided action on Monday. The
intraday chart pattern looks vulnerable, and the daily and
weekly charts don't look good either. If the market can
bounce back a bit and test the highs, then a lot of bearish
divergences will be even more pronounced than they were
coming in to Friday. At this juncture, the odds of that
happening do not look good.
On Monday we get the Leading Indicators at 10am. If the
market pops up and tests the initial resistance (or pokes
over and reverses) it should set up a good shorting
opportunity for a drop of about 10 ES points off of whatever
the early high is. On the down side, the initial support
looks like it must hold or the Friday lows will be tested/
broken before an attempt to turn back up.
June 2010 SP futures resistance
symbols: emini = esm0 / big contract =spm0
1193.00-1193.50
1199.50-1200.50
1199.50-1200.50
1209.75-1210.50
June 2010 SP futures support
symbols: emini = esm0 / big contract =spm0
1188.50-1188.00
1182.75-1182.00
1178.00-1177.50
1171.50-1171.00
June 2010 Nasdaq futures resistance
symbols: emini = nqm0 / big contract = ndm0
2016.00-2016.50
2024.50-2025.50
2032.25-2033.00
2037.00-2037.75
June 2010 Nasdaq futures support
symbols: emini = nqm0 / big contract = ndm0
2007.50-2007.00
1998.50-1997.75
1993.50-1992.50
June 2010 Dow futures resistance
symbols: emini = ymm0
11004-11008
11048-11052
11097-11101
11132-11134
June 2010 Dow futures support
symbols: emini = ymm0
10963-10959
10918-10914
10886-10882
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---------------------------
Good Trading,
Mike Reed
Copyright (c) 2010 by TradeStalker.com, Ft Wayne, IN.
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Disclaimer
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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
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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