TradeStalker's
R.B.I. Trader's Update
4 / 21 / 2010
(Published Since 1996)
...............................................
Dateline: 6:59 pm eastern time, 4/21/2010
We came into the day looking to get short if we had early
strength, and especially if the 1207.50-1208.50 zone on the
ES and the 2037.75-2038.25 on the NQ were reached. The ES
bounced to 1207.50 and the NQ reached 2037.75 and with
direct hits on key resistance the market reversed 30 minutes
into trading. A bounce off of 1202.25 was feeble, and from
1206.00 they broke that 1202 key support and dropped to
1198.25 before noon. The ES bounced back to updated
resistance at 1204.50-1205.00, then dropped again. Bottom
wasn't found until 90 minutes left, but with stocks closing
on an upswing, the futures headed down again into the close.
The technicals continue to get worse, despite a higher close
by all the indexes but the SP500. Also, the price action is
not able to stick. The break of the 1202 level changed the
market's character to bearish on Wednesday. Also, the back
and forth action gave one Vix Sell signal on Wednesday.
The after the close earnings has the market trading lower as
this is typed. The market will be a short on bounces, even
though there should be some rally attempts. We'll see about
that intraday on Thursday. This appears to be the start of
something bigger, and if we don't see signs of capitulation
(like the last one day drop) then it could carry on for more
than just a day or so.
We get the PPI before the open on Thursday, and then
Existing Home Sales 30 minutes into the day. Lately all of
the sell-offs have been reversed, and probably will be again
on Thursday. If there is an early drop, a counter trend
bounce should occur as shorts take profits. Then, the first
decent bounce should set up a better odds shorting
opportunity. It will probably be better to wait for the
first bounce to fizzle out to get short, rather than get too
involved on the long side up here. If there is a bounce back
that stalls/ reverses from around the initial resistance
zones, then that should be sold if the downside is going to
stay intact.
June 2010 SP futures resistance
symbols: emini = esm0 / big contract =spm0
1202.50-1203.00
1205.00
1207.50-1208.50
June 2010 SP futures support
symbols: emini = esm0 / big contract =spm0
1195.00
1194.00-1193.50
1188.50-1188.00
1182.75-1182.00
1178.00-1177.50
June 2010 Nasdaq futures resistance
symbols: emini = nqm0 / big contract = ndm0
2029.50-2030.00
2033.75
2037.75-2038.50
June 2010 Nasdaq futures support
symbols: emini = nqm0 / big contract = ndm0
2019.25
2018.25-2017.50
2007.50-2007.00
1998.50-1997.75
1993.50-1992.50
June 2010 Dow futures resistance
symbols: emini = ymm0
11071-11074
11086
11097-11101
June 2010 Dow futures support
symbols: emini = ymm0
11017
11000-10996
10963-10959
10918-10914
10886-10882
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Good Trading,
Mike Reed
TradeStalker.com
Copyright (c) 2010 by TradeStalker.com, Ft Wayne, IN.
TradeStalker Updates may not be redistributed without
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This publication's primary focus is trading the index
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