During the first hour of trading, the support and resistance zones on the SP and Nasdaq futures are the most important things to watch. The moving averages have not yet had a chance to come into play.

After that, if a trend is developing I watch several key exponential and simple moving averages on the 2 minute, the 5 minute and the 13 minute SP and Nasdaq futures charts.

These specific moving averages give reliable support and resistance for the market as long as the slope of the moving averages are fairly steep, indicating a trend. When there is no trend, the moving averages are flat and pretty much worthless.

When a trending market makes a countertrend move, and hits a key moving average on two or more different time frames at the same time, the probability of a good trade setup increases dramatically. If you get three hits at the same time, it's even better. Sometimes you'll see one key moving average get hit on the five minute SP chart at the same time another moving average is hit on the 13 minute Nasdaq chart. This also gives a good trade setup.

Eventually, a trending market will reach the next major support or resistance zone. At that point the zones once again become more important than the moving averages.

In afternoon trading, the market has often broken through a support or resistance zone several times. In that case, the zone is no longer useful, and new areas of support and resistance can usually be found. When I find them, I send my subscribers an RBI Intraday Update with the new support or resistance areas, and a description of what I think the market will do if it moves above or below them.

Mike Reed is author of TradeStalker's RBI Trader's Updates. He has been trading the Market for 23 years. His support and resistance numbers have been published on the internet since 1996. Mike's nightly support and resistance zones are specific and incredibly accurate. He offers an unlimited free trial of his nightly TradeStalker RBI Trader's Updates. http://www.TradeStalker.com

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Dollar rises versus euro in late trading Wednesday (AP via Yahoo! Finance)
The dollar rose against the euro late Wednesday night in New York. The 16-nation currency traded at $1.3588, down slightly from $1.3614 in late afternoon trading on Wednesday. Singapore dollar falls to new multi-week low against US currency (Nasdaq)
(RTTNews) - Against its US counterpart, the Singapore dollar showed weakness during Thursday's early trading. At 1:15 am ET, the Singapore currency declined to a new multi-week low of 1.4850 against the US dollar, compared to 1.4723 hit late New York Wednesday. Dollar rises against the Canadian currency in trading late Wednesday night (Canadian Business)
The dollar continued rising against the Canadian dollar late Wednesday night in New York. The U.S. currency bought 1.1983 Canadian dollars, up Alaron Currency Comment (Ag Report)
CHICAGO - Jan 7/09 - SNS -- Following is the currency futures comment from Alaron Trading Corp. The DX opened lower at 83.18 against most major foreign currency markets after weak data on Mortgage Applications (- 8.2%) and the private sector ADP Employment Survey showing a loss of 693,000 jobs. Dollar moves higher against the Canadian currency in trading late Tuesday night (Canadian Business)
The dollar rose against the Canadian dollar late Tuesday night in New York. The U.S. currency bought 1.1850 Canadian dollars, up from 1.1796 Teen prefers currency trading over Myspace and is making money doing it (WHAS TV11 Louisville)
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The dollar continued rising against the euro late Tuesday night in New York. The 16-nation currency traded at $1.3491, down from $1.3523 in late afternoon trading on Tuesday. EUR/USD: Trading the German Retail Sales (Daily FX via Yahoo! Finance)
The euro could strengthen against its currency counterparts throughout the following session as economists expect retail spending in Germany to increase 0.5% in November on the back of falling oil prices. Thailand Currency Climbs To 2-day High Against Dollar (Nasdaq)
(RTTNews) - During early Asian deals on Wednesday, the Thailand currency advanced against the US dollar. The dollar-baht pair that closed yesterday's trading at 35.0650 reached 34.9150 by about 9:35 pm ET. This set a 2-day high for the Thai baht. China to Encourage Foreign Currency Debt, May Allow Junk Bonds (Bloomberg)
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Day Trading - Moving Averages vs Support and Resistance

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