TradeStalker's
R.B.I. Trader's Update
10 / 06 / 2008
(Published Since 1996)
...............................................
Dateline: 6:41 pm eastern time, 10/6/2008
The market gapped down on Monday and with no reversal in the
first 15 minutes the market kept falling until reaching
1031.00 on the SP futures. A decent bounce followed, as the
SP futures made it back to 1061.00 before stalling out and
turning back down. A drift lower picked up some steam and
sold off sharply to 1009.00 on the SP futures. With just
under 90 minutes left in stock trading, the market turned
back up and were able to push through the 1045-1046 area.
The market kept running to the upside until reaching 1069.25
at the 4 pm close for stocks. After stocks closed the SP
futures pulled back 17.75 points and settled at a discount
to the cash index.
The market is emotion driven and showed today that a grossly
oversold market can reverse and rally sharply. The SP
futures rallied 60 points in just over an hour on Monday
afternoon. The bigger picture trend are still pointing down,
and we have see a lot of failed rallies lately. So, if the
market gets hit again and goes down to test or possibly
break the Monday lows, beware of another reversal. This is
especially the case if the SP500 cash falls to the 972-970
area and then turns up.
We get the Fed Minutes at 2 pm on Tuesday. If the market
opens higher, look to get short as soon as the upside
fizzles and begins to roll over. If that plays out, the
first decent pullback should set up a buying opportunity. If
the market is strong enough to hold the 1040.00-1039.50 area
on the SP futures on a pullback, then the market will be ok.
However, if that area isn't defended, then a move towards
the Monday lows, or lower, could be in the cards.
The initial resistance is at the 1069.50-1070.50 area on the
SP futures and 1427.75-1429.50 area on the Nasdaq futures.
The market is still vulnerable unless those are broken, and
not quickly reversed. If those areas are not a problem, then
the next hurdles would be at the 1082.00-1082.50 area on the
SP futures and 1448.50-1449.25 area on the Nasdaq futures.
If those areas are reached, and the market doesn't pull
back, then the 1088.00-1088.50 area on the SP futures and
1460.50-1462.00 area on the Nasdaq futures would be next. If
the market gets going on the upside, then look for strong
resistance at the 1102.00-1102.50 area on the SP futures and
1473.50-1474.75 area on the Nasdaq futures.
The initial support is at the 1047.50 level on the SP
futures and 1402.00 level on the Nasdaq futures. If those
levels are not quickly reversed, then the first key support
is at the 1040.00-1039.50 area on the SP futures and
1391.50-1390.50 area on the Nasdaq futures. If the market
can not bounce from those areas, then we could head towards
the 1025.00-1023.50 area on the SP futures and 1360.00-
1359.00 area on the Nasdaq futures. If those areas arte not
held then a test of the 1010.00-1009.00 area on the SP
futures and 1345.00-1343.75 area on the Nasdaq futures is
likely in the cards. If there isn't a reversal from a test
of Monday's lows, then it opens the door for a washout to
the 1002.50-1002.00 area on the SP futures and 1335.00-
1334.00 area on the Nasdaq futures. If those are broken, and
the market doesn't quickly reverse, then we could see the
972-970 area on the SP500 cash. If there is a reversal at
that area, it could start a sharp rally.
December 2008 SP futures resistance
symbols: emini = esz8 / big contract =spz8
1069.50-1070.50
1082.00-1082.50
1088.00-1088.50
1102.00-1102.50
December 2008 SP futures support
symbols: emini = esz8 / big contract =spz8
1047.50
1040.00-1039.50
1025.00-1023.50
1010.00-1009.00
1002.50-1002.00
972-970 if a crash-ette
December 2008 Nasdaq futures resistance
symbols: emini = nqz8 / big contract = ndz8
1427.75-1429.50
1448.50-1449.25
1460.50-1462.00
1473.50-1474.75
December 2008 Nasdaq futures support
symbols: emini = nqz8 / big contract = ndz8
1402.00
1391.50-1390.50
1360.00-1359.00
1345.00-1343.75
1335.00-1334.00
December 2008 Dow futures resistance
symbols: emini = ymz8
10073-10079
10172-10176
10231-10235
10231-10235
December 2008 Dow futures support
symbols: emini = ymz8
9933
9688-9682
9547-9542
9497-9492
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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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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.
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