By Mike Reed • Jul 2nd, 2009 • Category: Day-Trading
TradeStalker’s
R.B.I. Trader’s Update
7 / 01 / 2009
(Published Since 1996)
The market opened higher on Wednesday and after getting to 928.25 on the ES the move fizzled and there was a small pullback to 924.00. The market traded sideways for awhile, but unable to get a bounce to hold, buyers backed off and selling took over as the ES fell to what started as initial resistance to begin the day. The ES reached 917.75 with 5 minutes left in stock trading, just above the 917.50-917.00 target, and then firmed into the close.
Thursday is the last trading day for the week. We get the Employment data before the open, which everyone seems to be waiting for. The pattern on the daily chart looks ominous, and if the 909.00-908.25 area that was nailed on Tuesday is tested, and not held, it will put the market under pressure from a bigger picture viewpoint.
The daily internal gauges are in neutral still, but the Vix gave a couple repeat sell signals at Wednesday’s close. Also, the end-of-month plus first 2 days of the new month upside bias is now over. That is where the bulk of most months gains are made, and now that timeframe has gone away.
On Thursday, the market needs to get over the initial resistance areas, and hold them on a pullback, to get a good rally in gear. If that occurs, then watch the 931.50-932.50 area for a reversal / shorting opportunity. If there is follow through weakness, and the 917.75-916.75 area is broken and not quickly reversed, then a drop towards the 909.00-908.25 area would need to hold. If that area is tested, and unable to hold, then a drop to the low 900’s or high 890’s on the ES is likely on this leg down.
Good Trading,
Mike Reed
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