TradeStalker's
R.B.I. Trader's Update
10 / 1 / 2008
(Published Since 1996)
...............................................
Dateline: 6:12 pm eastern time, 10/1/2008
The market opened lower on Wednesday and just under the
1159.50-1259.00 support area. After falling to 1149.75, the
SP futures bounced back to 1158.00 but the move didn't stick
and the downside resumed. The downside lost momentum as it
approached our 1143.00-1142.00 key support and after making
a low at 1143.75, the SP futures turned up and broke up
through a falling wedge pattern. That caused a sprint to
1156.50 on the SP futures and the market pulled back a bit.
The 1152.00 updated support held and the market sprinted
higher. The SP futures reached 1172.75, then fell fast to
1153.25. The market quickly reversed (6 ES points in 1
minute) and the SP futures tested its high. The SP futures
reached 1173.00 and reversed, leaving a double top in place.
A drop to 1161.50 was reversed and the market bounced back
into the close.
The futures settled well above fair value on Wednesday, as
confidence builds that the market is out of trouble. We
shall see about that, however a pretty classic climax bottom
looks to be in place. In any case, the market is having
trouble staying over 1170 on the SP futures for very long.
Until they can get over that 1170 level and not quickly
reverse, both sides will be in play.
On Thursday look for early strength to fizzle for a shorting
opportunity. A pop over 1170 that reverses should set up a
decent trade. If that plays out, a pullback should hold at
the 1153.00-1152.00 area on the SP futures. If that zone is
broken and not quickly reversed, then the trends will roll
over.
The initial resistance is at the 1172.50-1173.00 area on the
SP futures and the 1583.50-1584.00 area on the Nasdaq
futures. If the market doesn't reverse from those areas,
then a push towards the 1176.00-1177.00 area on the SP
futures and the 1589.00-1591.50 area on the Nasdaq futures
could be in the cards. If the market gets up there and
doesn't show any signs of reversing, then a move to the
1180.25-1181.00 area on the SP futures and the 1610.50-
1612.00 area on the Nasdaq futures is likely before the
market turns back down. If that doesn't happen and instead
the market blows through those areas, then the 1188.00-
1189.00 area on the SP futures and the 1620.00-1621.00 area
on the Nasdaq futures would be next. If those are not a
problem then the market is in melt-up mode and we could see
the 1194.50-1195.00 area on the SP futures and the 1628.00-
1630.00 area on the Nasdaq futures on Thursday.
The initial support is at the 1161.50 level on the SP
futures and the 1563.00 level on the Nasdaq futures. If
those are broken and the market doesn't turn right back up,
then the door is open for a test of the 1153.00-1152.00 area
on the SP futures and the 1557.25-1556.00 area on the Nasdaq
futures. Those spike lows from Wednesday will hold if the
market is in good shape. If those do not hold, then the
major support is down at the 1143.00-1142.00 area on the SP
futures and the 1547.50-1545.75 area on the Nasdaq futures.
Those areas shouldn't break if the market is going to avoid
a retest of this week's lows. If that is going to occur,
beware that a good rebound could occur if the 1133.00-
1132.00 area on the SP futures and the 1534.50-1532.50 area
on the Nasdaq futures are reached and the market can quickly
turn back up.
December 2008 SP futures resistance
symbols: emini = esz8 / big contract =spz8
1172.50-1173.00
1176.00-1177.00
1180.25-1181.00
1188.00-1189.00
1194.50-1195.00
December 2008 SP futures support
symbols: emini = esz8 / big contract =spz8
1161.50
1153.00-1152.00
1143.00-1142.00
1133.00-1132.00
December 2008 Nasdaq futures resistance
symbols: emini = nqz8 / big contract = ndz8
1583.50-1584.00
1589.00-1591.50
1610.50-1612.00
1620.00-1621.00
1628.00-1630.00
December 2008 Nasdaq futures support
symbols: emini = nqz8 / big contract = ndz8
1563.00
1557.25-1556.00
1547.50-1545.75
1534.50-1532.50
December 2008 Dow futures resistance
symbols: emini = ymz8
10884-10889
10900-10904
10938-10944
11018-11023
11071-11078
December 2008 Dow futures support
symbols: emini = ymz8
10789
10743-10738
10657-10651
10538-10533
---------------------------
REMINDER:
Real Time subscribers can view these updates on
the web at this site:
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.
www.TradeStalker.com
PO Box 9783, Ft Wayne, IN, 46899
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.
*************************************************
No comments:
Post a Comment