TradeStalker's
R.B.I. Trader's Update
9 / 29 / 2008
(Published Since 1996)
...............................................
Dateline: 7:11 pm eastern time, 9/29/2008
The market opened under the key 1199.00-1198.50 area on the
SP futures on Monday and kept dropping until reaching
1165.75 and then a bounce followed. The major support that
was at 1181.00-1180.00 on the SP futures turned into
resistance, and the market backed off to 1162.75 on the SP
futures. A bounce off of that level took the market back to
updated resistance and quickly reversed, and when the
bailout plan wasn't passed the market was hit with selling.
After the SP futures reached 1116.25, a new low for the
year, they ran up almost 50 points in 10 minutes and then
reversed from 1166.00. A quick drop of 40 SP points followed
and then the SP futures bounced back. The 1155.00 level was
rejected and after falling to 1114.50 on the SP futures the
market bounced back. The SP tried to hold up, but the Nasdaq
futures were leading the downdraft and the cash indices sold
off to close at new lows for the year.
Although the market opened down big, the highs were on the
open and the lows were made at the close. Off of the opening
highs, the SP futures dropped 82.50 points, while the Nasdaq
futures dropped 155 points. The Dow cash dropped 608 points
from its opening high to the low made at the close. The
futures settled well above fair value on Monday, after some
true panic selling this go around. The downside momentum
probably won't be turned around very easy.
We will get the Consumer Confidence number 30 minutes into
the trading day on Tuesday, as if the market isn't volatile
enough. In any case, if the market opens lower on Tuesday
and turns up in the first 40 minutes of trading, a good
trade on the long side should set up. If that plays out,
beware that the first decent bounce will likely be sold. If
instead the market opens higher, it could set up a trade
short side. A break over the initial resistance, that isn't
quickly reversed, is needed to take some of the pressure off
on Tuesday.
The initial resistance is at the 1138.00-1138.50 area on the
SP futures and 1553.00-1553.50 area on the Nasdaq futures.
If those are cleared then there should be some resistance
near the 1145.00-1146.00 and 1560.50-1561.50 areas. The next
resistance is up at the 1155.00-1156.00 area on the SP
futures and 1573.00-1574.50 area on the Nasdaq futures. If
those are cleared, then it looks like the 1164.50-1166.00
zone on the SP futures and 1580.50-1580.75 zone on the
Nasdaq futures could be key resistance. If the market gets
there and has no problem getting through them, then the
1177.50-1178.00 area on the SP futures and 1595.00-1596.00
area on the Nasdaq futures should be as far as a bounce goes
if the lows are going to be tested again soon.
The initial support is at the 1114.50-1114.00 area on the SP
futures and 1494.00-1492.50 area on the Nasdaq futures. If
those are tested, and the market isn't able to reverse
quickly, then the pressure should still be on. The next good
support would be near the 1102.50-1102.00 area on the SP
futures and 1480.50-1479.50 area on the Nasdaq futures. If
those are broken, then there is minor support around the
1091.00-1090.00 area on the SP futures and 1468.50-1466.50
area on the Nasdaq futures. If the market gets down there
and does not reverse, then major support is at the 1078.00-
1076.00 area on the SP futures. If the market can not hold
and reverse off of that zone, then we could see a test of
the 1062.00-1060.00 area on the SP futures.
December 2008 SP futures resistance
symbols: emini = esz8 / big contract =spz8
1138.00-1138.50
1145.00-1146.00
1155.00-1156.00
1164.50-1166.00
1177.50-1178.00
December 2008 SP futures support
symbols: emini = esz8 / big contract =spz8
1114.50-1114.00
1102.50-1102.00
1091.00-1090.00
1078.00-1076.00 - Major
1062.00-1060.00
December 2008 Nasdaq futures resistance
symbols: emini = nqz8 / big contract = ndz8
1553.00-1553.50
1560.50-1561.50
1573.00-1574.50
1580.50-1580.75
1595.00-1596.00
December 2008 Nasdaq futures support
symbols: emini = nqz8 / big contract = ndz8
1494.00-1492.50
1480.50-1479.50
1468.50-1466.50
December 2008 Dow futures resistance
symbols: emini = ymz8
10626-10633
10663-10671
10761-10766
10840-10846
10955-11963
December 2008 Dow futures support
symbols: emini = ymz8
10408-10400
10289-10282
10232-10225
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http://www.tradestalker.com/members
---------------------------
Good Trading,
Mike Reed
Copyright (c) 2008 by TradeStalker.com, Ft Wayne, IN.
TradeStalker Updates may not be redistributed without
permission.
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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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