TradeStalker's
R.B.I. Trader's Update
10 / 16 / 2008
(Published Since 1996)
...............................................
Dateline: 6:48 pm eastern time, 10/16/2008
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We got early strength to short on Thursday, as the SP
futures went up to 926.75 (just under the 927.00-928.00
initial resistance) and then reversed and trended down 61.50
points to 865.25. A reversal off that level gave the bulls a
nice run, but it failed. In the 4th and 5th Intraday Updates
we were looking for a short in the 912-913 zone, and the SP
futures reversed from 913.75. They dropped 16.75 points to
897.00 and the market reversed and rallied to 918.25. The
pullback to 909 held and the market headed for the highs.
The 927-928 area was cut through, and the SP futures ran up
to just over the 933-934 and pulled back. That dip was
bought and the SP futures rallied to the 948.50-949.00 zone
(poking up to 950.00) in the last 30 minutes before pulling
back into the close.
We could have a nice low in place, with the SP futures
possibly putting in a "rising W" bottom. If this is the
case, a pullback could go as far as the 923.00-922.00 area
and not hurt the upside bias for Friday. We'll see how
things are working out on Friday. If this is just another
failed rally in a bear market, then the 923.00-922.00 area
will *not* hold on a pullback and the 893-891 area would
also be broken on Friday. If buyers don't defend that area,
then the SP futures could take out the Thursday lows and put
the market on edge over the weekend. But, if things have
changed for the better, then a sharp drop to that zone will
be aggressively bought if it's tested.
On Friday use early weakness to get long if the market turns
up from the initial support areas or above. If that plays
out, the first decent rally will likely set up a good
shorting opportunity as soon as the upside stalls and begins
to roll over.
The initial resistance is at the 950.00 level on the SP
futures and the 1330.75 area on the Nasdaq futures. If those
are cleared and held, then the next good resistance is at
the 961.00-962.00 area on the SP futures and the 1340.50-
1342.00 area on the Nasdaq futures. If those are not a
problem, then we could see the 970.00-971.00 and 1351.50-
1352.75 areas reached. If there is another big up day, then
the market could get to the 981.75-983.00 area on the SP
futures and the 1372.50-1374.00 area on the SP futures. If
there is another blast-off move higher, then look for
resistance at the 997.50-998.50 area on the SP futures.
The initial support is at the 937.70-936.50 area on the SP
futures and the 1306.00-1304.00 area on the Nasdaq futures.
If those areas are not bought, then the first key support is
at the 923.00-922.00 area on the SP futures and the 1280.00-
1277.50 area on the Nasdaq futures. If the market cannot
hold those areas, then a drop towards the 893.00-891.00 area
on the SP futures and the 1236.00-1234.75 area on the Nasdaq
futures could be in the cards. If those areas do not hold,
or quickly reverse if broken, then the downside could extend
towards the 866.00-865.00 area on the SP futures and the
1193.00-1191.00 area on the Nasdaq futures.
December 2008 SP futures resistance
symbols: emini = esz8 / big contract =spz8
950.00
961.00-962.00
970.00-971.00
981.75-983.00
997.50-998.50
December 2008 SP futures support
symbols: emini = esz8 / big contract =spz8
937.70-936.50
923.00-922.00
893.00-891.00
866.00-865.00
December 2008 Nasdaq futures resistance
symbols: emini = nqz8 / big contract = ndz8
1330.75
1340.50-1342.00
1351.50-1352.75
1372.50-1374.00
December 2008 Nasdaq futures support
symbols: emini = nqz8 / big contract = ndz8
1306.00-1304.00
1280.00-1277.50
1236.00-1234.75
1193.00-1191.00
December 2008 Dow futures resistance
symbols: emini = ymz8
9006
9037-9044
9091-9098
9202-9211
December 2008 Dow futures support
symbols: emini = ymz8
8873-8865
8709-8701
8438-8428
8190-8182
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---------------------------
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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