TradeStalker's
R.B.I. Trader's Update
7 / 8 / 2008
(Published Since 1996)
...............................................
Dateline: 6:15 pm eastern time, 7/8/2008
We wanted to buy early weakness on Tuesday, and also had
"pretty strong support at the 1248.50-1248.00 area on the SP
futures" and the first dip nailed 1248.00 and bounced 9.75
points to 1257.75. After testing 1248.00 again, they bounced
8.75 points to 1256.75 and fell back again. That 1248.00
support was broken and the market dropped a bit further to
1244.00 on the SP futures, and the move reversed. A rally up
to 1261.00 followed, and after a shallow pullback, the
market tested the highs and reversed. With a double top in
place, the market sold off and the SP futures dropped to
test 1250. That was able to hold, and the move back over
1254 on the SP futures took the pressure off and the market
took off to the upside. After blowing through the highs the
move was steadily bought and the market rallied strongly.
The move lasted into the final minutes of stock trading with
the SP futures poking through the 1274.50-1275.00 zone
before pulling back into settlement time.
The move on Tuesday finally relieved the oversold condition
of the daily indicators. The market might have a short term
bottom in place. However, even if that's the case, there
will not be a non-stop rally to the major 1293-1294 area on
the SP futures.
The afternoon rally on Tuesday was short-term parabolic. So,
on Wednesday, if there is early strength and the move stalls
and reverses, it should set the stage for a decent sized
pullback. However, if the market obliges, beware that the
first decent pullback will likely set up a buying
opportunity as soon as the downside momentum stalls and the
move reverses. As long as a pullback holds over the 1268.50-
1268.00 area on the SP futures, the upside momentum will
remain intact. If that area doesn't hold, then the key
support on Wednesday is at the 1250.75-1250.25 area from
where the afternoon rally started on Tuesday. If the market
gets down there, and can't quickly turn around, then we
could see some "get me out" type of panic selling. If that
happens, and the 1241.00 low doesn't hold, then the market
could come unraveled and a move towards the 1237-1236 area
would be the last key support above the 1228 level.
The initial resistance is at the 1275.75-1276.25 area on the
SP futures and the 1875.50-1876.75 area on the Nasdaq
futures. If those are not rejected, then the next good
resistance is at the 1285.75-1286.25 area on the SP futures
and the 1884.50-1885.00 area on the Nasdaq futures. If the
market doesn't have trouble getting through those areas,
then there should key resistance at the 1293.00-1294.00 area
on the SP futures and the 1896.00-1897.00 area on the Nasdaq
futures. If the market gets up there, it should reverse and
head back down if this is just a bounce in the bear market.
However, if the market gets through those areas, the market
could keep going and head for the 1297-1298 zone on the SP
futures.
The initial support is at the 1268.50-1268.00 area on the SP
futures and the 1863.25-1862.25 area on the Nasdaq futures.
If there is a gentle pullback to those areas and the market
turns back up, then the rally should continue. If those
areas are broken, then there should be good support at the
1261.00-1260.50 area on the SP futures and the 1856.75-
1856.00 area on the Nasdaq futures. If those are reached and
the market doesn't quickly turn up, then the downside could
pick up steam. The key support would be at the 1250.75-
1250.25 area on the SP futures and the 1839.25-1838.25 area
on the Nasdaq futures.
September 2008 SP futures resistance
symbols: emini = esu8 / big contract =spu8
1275.75-1276.25
1285.75-1286.25
1293.00-1294.00
1297-1298
September 2008 SP futures support
symbols: emini = esu8 / big contract =spu8
1268.50-1268.00
1261.00-1260.50
1250.75-1250.25
September 2008 Nasdaq futures resistance
symbols: emini = nqu8 / big contract = ndu8
1875.50-1876.75
1884.50-1885.00
1896.00-1897.00
September 2008 Nasdaq futures support
symbols: emini = nqu8 / big contract = ndu8
1863.25-1862.25
1856.75-1856.00
1839.25-1838.25
September 2008 Dow futures resistance
symbols: emini = ymu8
11383-11387
11473-11478
11522-11528
September 2008 Dow futures support
symbols: emini = ymu8
11337-11333
11298-11294
11207-11203
September 2008 Russell futures resistance
symbols: emini = er2u8 / big contract = er2u8
683.70-684.20
690.60-691.10
695.30-695.80
September 2008 Russell futures support
symbols: emini = er2u8 / big contract = er2u8
673.80-673.50
666.80-666.20
659.50-659.10
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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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