TradeStalker's
R.B.I. Trader's Update
7 / 21 / 2008
(Published Since 1996)
...............................................
Dateline: 6:33 pm eastern time, 7/21/2008
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We wanted to get short if there was early strength just as
soon as the move stalled / reversed on Monday. The market
gapped up and the SP futures barely poked over the 1267
resistance before reversing about 30 minutes in. The selling
took the SP futures down to 1256.25 shortly after noon. The
market bounced back but then reversed at 1263.50, and
selling came back in. After holding 1259.00 support for
about half of an hour, that level finally broke and the
pressure was on again. The SP futures fell to a new low for
the day at 1255.00, but quickly reversed back over the
previous 1256.25 low and then move choppily higher into the
close.
The SP futures had back to back narrow range days, and range
expansion and/or a pickup in volatility usually follows. The
Vix dropped quite a bit over the past 2 days, showing a lot
of complacency. My RBI Sell gate was open still at Monday's
close.
Whatever the case, it's earning's season and after the close
several companies reported poor numbers. This has the market
down sharply as this is being written. If this holds
overnight, then a reversal in the first 20 minutes or so on
Tuesday could set up a trade on the long side. If that plays
out, the first decent bounce should set up a better odds
trade on the short side.
The initial resistance would be at the 1255.25-1256.25 area
on the SP futures and 1813.50-1815.75 area on the Nasdaq
futures. If the market opens a lot lower, then a bounce to
those zones that stalls out would set up a good shorting
opportunity. If those are broken, then there should be very
strong resistance at the 1263.00-1263.75 area on the SP
futures and 1831.00-1831.75 area on the Nasdaq futures. If
those areas are somehow broken, then the big resistance
areas are at the 1267.50-1268.00 area on the SP futures and
1841.00-1842.00 area on the Nasdaq futures.
The initial support is at the 1250.50-1249.50 area on the SP
futures and 1804.00-1803.50 area on the Nasdaq futures. If
those are broken, and the market can not quickly reverse and
hold those areas, then the door is open for a drop towards
the 1245.75-1245.00 area on the SP futures and 1798.25-
1797.50 area on the Nasdaq futures. If the market gets there
and still can not get turned back up, then the 1239.25-
1238.50 area on the SP futures and 1788.00-1786.50 area on
the Nasdaq futures could be in the cards. If those are
broken, the market could be on the way to testing the lows
from last week. The next key support would be at 1234.50,
and if that doesn't hold, then the 1225.50-1224.50 area is
the last good support zone in front of the 1200.75 low.
September 2008 SP futures resistance
symbols: emini = esu8 / big contract =spu8
1255.25-1256.25
1263.00-1263.75
1267.50-1268.00
September 2008 SP futures support
symbols: emini = esu8 / big contract =spu8
1250.50-1249.50
1245.75-1245.00
1239.25-1238.50
1234.50
1225.50
September 2008 Nasdaq futures resistance
symbols: emini = nqu8 / big contract = ndu8
1813.50-1815.75
1831.00-1831.75
1841.00-1842.00
September 2008 Nasdaq futures support
symbols: emini = nqu8 / big contract = ndu8
1804.00-1803.50
1798.25-1797.50
1788.00-1786.50
September 2008 Dow futures resistance
symbols: emini = ymu8
11400-11408
11470-11474
11543-11548
September 2008 Dow futures support
symbols: emini = ymu8
11364-11360
11337-11332
11278-11274
September 2008 Russell futures resistance
symbols: emini = er2u8 / big contract = er2u8
694.50-694.90
699.80-700.10
703.80-704.20
September 2008 Russell futures support
symbols: emini = er2u8 / big contract = er2u8
692.80-692.20
687.80-687.20
682.80-682.50
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Good Trading,
Mike Reed
Copyright (c) 2008 by TradeStalker.com, Ft Wayne, IN.
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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
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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
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is substantial. You can lose more than your original
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