TradeStalker's
R.B.I. Trader's Update
10 / 13/ 2008
(Published Since 1996)
...............................................
Dateline: 6:44 pm eastern time, 10/13/2008
The market gapped up big on the open on Monday, but after
getting to 949.75 the strength was sold and the market
backed off. After reaching 938.00 on the SP futures the
market rallied back and made a high at 969.00 before noon.
The move tired out and the SP futures fell to the 954.00
updated support and then quickly reversed. The bulls took
control and the market put together its biggest rally in
history. The SP futures rallied to fill the gap at 1010.00
and kept going until reaching 1017.50 just before the close.
Well, it sure looks like a bottom is in place. The market
hasn't done anything in a small way lately. The averages
were all up 11% or more on Monday. The short term gauges are
overbought, however. The advancing issues outpaced
declining issues on the NYSE by better than 19 to 1, and the
up volume over down volume was also 19 to 1.
Since the market ended very strong, look for a shorting
opportunity if there is early strength as soon as the move
stalls and begins to turn over. This should set up in the
first 20 minutes or so if a reversal is going to occur. If
this plays out, be ready to cover and get long as soon as
the first decent pullback runs out of steam. That early
selloff should be over in the first 90 minutes if the upside
is going to continue.
The initial resistance is at the 1017.50-1018.00 area on the
SP futures and the 1459.50-1461.50 area on the Nasdaq
futures. If those are tested and rejected, it sets up a
trade on the short side. If instead those are exceeded and
not quickly reversed, then a run towards the 1027.00-1028.00
area on the SP futures and the 1470.50-1472.50 area on the
Nasdaq futures could be in the cards. If those areas are not
sold, then a move to the 1034.00-1035.00 area on the SP
futures and the 1481.50-1482.50 area on the Nasdaq futures
is likely before a reversal occurs.
The initial support is at the 1010.50-1009.50 area on the SP
futures and the 1449.50-1448.50 area on the Nasdaq futures.
If those do not hold, then we will get a deeper pullback
before good buying comes in. The next support is at the
989.00-988.00 area on the SP futures and the 1413.50-1412.00
area on the Nasdaq futures. If those are broken, then it
opens the door for a move towards the 969.00-968.50 area on
the SP futures and the 1394.00-1392.50 area on the Nasdaq
futures. If the market gets down here, it would be a good
buying opportunity if the market can turn back up from those
areas. If they don't hold, then the 962.00-961.00 area on
the SP futures and the 1364.50-1362.50 area on the Nasdaq
futures would be the next good support. If those are reached
and the market doesn't reverse, then it could mean that the
market is in some trouble again. The next support would be
key, at the 955.00-954.00 area on the SP futures and the
1351.50-1350.50 area on the Nasdaq futures. If those are not
held, then the trends roll back over and the 943.00-942.00
area on the SP futures and the 1342.00-1340.50 area on the
Nasdaq futures would be the next key support. If those areas
hold, we get a good rally. If they do not, then the 934.00
level on the SP futures and the 1318.75 level on the Nasdaq
futures need to hold or we have a big reversal going on.
December 2008 SP futures resistance
symbols: emini = esz8 / big contract =spz8
1017.50-1018.00
1027.00-1028.00
1034.00-1035.00
December 2008 SP futures support
symbols: emini = esz8 / big contract =spz8
1010.50-1009.50
989.00-988.00
969.00-968.50
962.00-961.00
955.00-954.00
943.00-942.00
934.00
December 2008 Nasdaq futures resistance
symbols: emini = nqz8 / big contract = ndz8
1459.50-1461.50
1470.50-1472.50
1481.50-1482.50
December 2008 Nasdaq futures support
symbols: emini = nqz8 / big contract = ndz8
1449.50-1448.50
1413.50-1412.00
1394.00-1392.50
1364.50-1362.50
1351.50-1350.50
1342.00-1340.50
1318.75
December 2008 Dow futures resistance
symbols: emini = ymz8
9518-9523
9599-9613
9672-9680
December 2008 Dow futures support
symbols: emini = ymz8
9442-9437
9254-9248
9059-9052
8990-8982
8938-8930
8881-8873
8740
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---------------------------
Good Trading,
Mike Reed
Copyright (c) 2008 by TradeStalker.com, Ft Wayne, IN.
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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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