TradeStalker's
R.B.I. Trader's Update
07 / 01 / 2008
(Published Since 1996)
...............................................
Dateline: 6:01 pm eastern time, 7/1/2008
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The market gapped down on Tuesday, but after about 20
minutes of trading the market reversed and the SP futures
rallied from 1266.75 to 1283.75 by 11 am eastern time. There
was a pullback and a bounce to 1282.00 that reversed,
setting up a 1-2-3 top and the market sold off pretty hard.
The drop didn't stop until reaching 1261.00 on the SP
futures shortly after noon. Off of new lows for this leg
down, buyers stepped to the plate and the 1272-1273 area on
the SP futures was cleared and that brought in more buying
as the market kept going until reaching new highs for the
day. The SP futures made it to 1286.50 and ran out of steam,
and the market pulled back a bit. The SP futures fell to
1278.25, but without much downside momentum, the market got
its footing and rallied back to close at the highs.
*** NOTE: After noon on Wednesday, there will not
be an update until Sunday night, July 6th.
Everyone have a great, and safe, holiday weekend.
***
The market has turned the corner short term, and maybe
longer. My daily indicators are at major extremes, normally
seen at major lows. The VIX gave 2 of 5 possible buy signals
on Tuesday. The market action was similar to my "ideal
scenario" from last night for a low. The only thing that was
different was that the market gave buyers a second chance as
the early lows were broken and then reversed. So, for now it
looks like the path of least resistance should be to the
upside. However, it's doubtful that the market goes up in a
straight line fashion.
A back and forth type day, with an upside bias, should play
out best on Wednesday and it wouldn't be surprising to see
the 1291.50-1292.00 area on the SP futures reached, and
maybe even as far as the 1297.75-1298.25 area on the SP
futures on this leg up. It would take a break of the
1271.00-1270.25 area on the SP futures to change things from
good to bad. Look to short early strength as soon as the
move stalls and then buy the first decent pullback.
Thereafter, don't marry either side until the market proves
itself strong, or weak, for more than a few hours.
The initial resistance is at the 1288.50-1289.00 area on the
SP futures and the 1875.00-1876.00 on the Nasdaq futures. If
those are no problem, then the 1291.50-1292.00 area on the
SP futures and the 1881.25-1882.00 on the Nasdaq futures
would be next. It looks like those areas could be key. If
the market doesn't reverse from there, then the next hurdles
are at the 1293.25 level on the SP futures and the 1888.75
level on the Nasdaq futures. If the market really gets
moving, then we could see a move towards the 1297.75-1298.25
area on the SP futures and the 1897.50-1898.25 on the Nasdaq
futures.
The initial support is at the 1278.25-1278.00 area on the SP
futures and the 1856.00-1855.50 on the Nasdaq futures. If
those are not defended, then the key areas would be at the
1271.00-1270.25 area on the SP futures and the 1845.00-
1844.00 on the Nasdaq futures. If those are broken and the
market doesn't quickly reverse back to the upside, then the
door is open for a drop towards the 1264.50-1364.00 area on
the SP futures and the 1830.25-1829.75 area on the Nasdaq
futures. If those break, then the 1261.00 level on the SP
futures and the 1822.75 level on the Nasdaq futures will
need to hold, otherwise the downside could get ugly.
*** NOTE: After noon on Wednesday, there will not
be an update until Sunday night, July 6th.
Everyone have a great, and safe, holiday weekend.
***
September 2008 SP futures resistance
symbols: emini = esu8 / big contract =spu8
1288.50-1289.00
1291.50-1292.00
1293.25
1297.75-1298.25
September 2008 SP futures support
symbols: emini = esu8 / big contract =spu8
1278.25-1278.00
1271.00-1270.25
1264.50-1364.00
1261.00
September 2008 Nasdaq futures resistance
symbols: emini = nqu8 / big contract = ndu8
1875.00-1876.00
1881.25-1882.00
1888.75
1897.50-1898.25
September 2008 Nasdaq futures support
symbols: emini = nqu8 / big contract = ndu8
1856.00-1855.50
1845.00-1844.00
1830.25-1829.75
1822.75
September 2008 Dow futures resistance
symbols: emini = ymu8
11395-11399
11423-11426
11437
11583-11587
September 2008 Dow futures support
symbols: emini = ymu8
11317-11315
11246-11242
11188-11184
11167
September 2008 Russell futures resistance
symbols: emini = er2u8 / big contract = er2u8
691.70-692.20
695.70-696.40
698.20
701.60-702.40
September 2008 Russell futures support
symbols: emini = er2u8 / big contract = er2u8
686.30-686.00
682.20-682.00
677.30-677.00
675.10
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---------------------------
Good Trading,
Mike Reed
Copyright (c) 2008 by TradeStalker.com, Ft Wayne, IN.
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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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