TradeStalker's
R.B.I. Trader's Update
7 / 9 / 2008
(Published Since 1996)
...............................................
Dateline: 6:49 pm eastern time, 7/9/2008
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We were looking to short early strength that stalled and
reversed on Wednesday, and just 6 minutes into trading we
got just that. The SP futures popped up to 1278.75, stalled
for about 10 seconds, then dropped 9.50 points to 1269.25.
The first pullback was reversed, but I warned that a double
top could be in the making. The market did just that, and
the SP futures pulled back 5.75 points before bouncing
again. Then the market made a triangle pattern, and after
the break down, a bounce to 1275.50 was quickly reversed and
the SP futures fell to the key support at the 1265.00-
1264.50 zone. In the 5th intraday update the 1270.50 level
was given as new resistance, and the SP futures reached
1270.25 and reversed again. That set up a quick short as the
SP futures went into a range. A clean break of the range was
needed to get anything going, after the breakdown a good
entry / re-entry occurred around 2:45 pm as the SP futures
poked to bottom of the range at 1264.25 and turned down
again. The move continued until the SP futures reached
1244.75 at the 4 pm close for stocks and then firmed a bit
into settlement.
On Thursday there could be a buying opportunity if the
market opens lower and can turn back up in the very early
going. If that plays out, don't fall in love with the long
side as the bears are back in control. The SP futures need
to break and hold the 1257.50-1258.25 zone to just get back
to neutral, and even then a rally likely won't stick unless
there is an outside influence that causes a rally. Left on
its own, the path of least resistance will be to the
downside.
The initial resistance is at the 1254.00 level on the SP
futures and the 1838.75 level on the Nasdaq futures. If
those are cleared, then the 1257.50-1258.25 area on the SP
futures and the 1844.75-1845.75 area on the Nasdaq futures
should be key. If the market gets there and doesn't reverse,
then the 1265.00-1265.50 area on the SP futures and the
1853.50-1854.25 area on the Nasdaq futures should offer
strong resistance. If they are not sold, then the 1270.00-
1270.50 area on the SP futures and the 1864.00-1865.00 area
on the Nasdaq futures would be the next big hurdles on
Thursday.
The initial support is at the 1241.00 level on the SP
futures and the 1823.75 level on the Nasdaq futures. If
broken, then key support is at the 1236.00-1235.50 area on
the SP futures and the 1814.00-1813.00 area on the Nasdaq
futures. If there isn't a reversal from there, then the
1229.00-1228.00 area on the SP futures and the 1803.00-
1802.00 on the Nasdaq futures could be seen. If those don't
hold, then the 1218.00 level could be in the cards. The next
major support is at the 1173.50-1172.50 area on the SP
futures.
September 2008 SP futures resistance
symbols: emini = esu8 / big contract =spu8
1254.00
1257.50-1258.25
1265.00-1265.50
1270.00-1270.50
September 2008 SP futures support
symbols: emini = esu8 / big contract =spu8
1241.00
1236.00-1235.50
1229.00-1228.00
1218.00
1173.50-1172.50
September 2008 Nasdaq futures resistance
symbols: emini = nqu8 / big contract = ndu8
1838.75
1844.75-1845.75
1853.50-1854.25
1864.00-1865.00
September 2008 Nasdaq futures support
symbols: emini = nqu8 / big contract = ndu8
1823.75
1814.00-1813.00
1803.00-1802.00
September 2008 Dow futures resistance
symbols: emini = ymu8
11203
11228-11233
11281-11283
11330-11334
September 2008 Dow futures support
symbols: emini = ymu8
11130
11081-11077
11012-11006
September 2008 Russell futures resistance
symbols: emini = er2u8 / big contract = er2u8
668.00
669.60-670.20
673.70-674.20
678.20-678.70
September 2008 Russell futures support
symbols: emini = er2u8 / big contract = er2u8
661.00
657.00-656.60
652.10-651.70
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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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