TradeStalker's
R.B.I. Trader's Update
10 / 20 / 2008
(Published Since 1996)
...............................................
Dateline: 6:15 pm eastern time, 10/20/2008
The SP futures opened up 19.50 points on Monday and quickly
pulled back. That bit of weakness was bought and the SP
futures ran up to 970.00 and then turned down. The 955.00
level was broken and it lead to a move to new lows for the
day by 11am. The selloff was reversed and the SP futures
climbed to the 971.50-972.50 resistance zone. The SP futures
reversed from a 972.25 high and dropped to 960.75 and
quickly reversed back up. The market popped back to the
971.50-972.50 resistance zone, then the grind higher was
accelerated as the move went mini-parabolic into the close.
The internal gauges are getting short term overbought, and
the Vix gave a sell signal at Monday's close. After the
morning selloff, the action was choppy trend up with good
buying on Monday. The move in the last hour was straight up,
however, so the first good trading opportunity should be on
the short side. Then, if the mood doesn't change and stick,
then the first decent pullback would set up a buying
opportunity. The initial support shouldn't break by much or
else a fairly deep retracement could occur before the
downside subsides.
The initial resistance is at the 992.50-993.00 area on the
SP futures and 1362.50-1363.25 area on the Nasdaq futures. A
pop to those areas that reverses in the early going sets up
a good shorting opportunity. If those are cleared, then we
could see the 997.75-998.25 area on the SP futures and
1370.50-1371.75 area on the Nasdaq futures. If the market
gets up there and doesn't turn back down, then a push to the
1002.50-1003.00 area on the SP futures and/or 1379.50-
1380.50 area on the Nasdaq futures would be next. If we
don't see that area get rejected, then a move towards the
1010.00-1011.00 area on the SP futures and 1395.25-1396.75
area on the Nasdaq futures could be in the cards.
The initial support is at the 987.25-986.50 area on the SP
futures and 1350.50-1349.50 area on the Nasdaq futures. If
those are broken, then a decent drop should be underway. The
974.00-972.50 area on the SP futures and 1336.00-1334.75
area on the Nasdaq futures would need to hold to keep the
trends in decent shape. If those are broken, then the
967.00-965.50 area on the SP futures and 1327.00-1325.50
area on the Nasdaq futures will likely be seen. If the
market gets there and doesn't reverse then the 961.50-960.50
area on the SP futures and 1319.75-1318.50 area on the
Nasdaq futures is a pivotal area for the market. If those
are not held, then the next support is at the 955.00 and
1309.50 levels. If the market doesn't hold there then we
have a bad day underway again and could fall towards the
944-943.00 area on the SP futures.
December 2008 SP futures resistance
symbols: emini = esz8 / big contract =spz8
992.50-993.00
997.75-998.25
1002.50-1003.00
1010.00-1011.00
December 2008 SP futures support
symbols: emini = esz8 / big contract =spz8
987.25-986.50
974.00-972.50
967.00-965.50
961.50-960.50
955.00
944-943.00
December 2008 Nasdaq futures resistance
symbols: emini = nqz8 / big contract = ndz8
1362.50-1363.25
1370.50-1372.00
1379.50-1380.50
1395.25-1396.75
December 2008 Nasdaq futures support
symbols: emini = nqz8 / big contract = ndz8
1350.50-1349.50
1336.00-1334.75
1327.00-1325.50
1319.75-1318.50
1309.50
December 2008 Dow futures resistance
symbols: emini = ymz8
9324-9329
9372-9379
9418-9423
9512-9521
December 2008 Dow futures support
symbols: emini = ymz8
9285-9280
9109-9098
9047-9038
9003-8996
8867
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---------------------------
Good Trading,
Mike Reed
Copyright (c) 2008 by TradeStalker.com, Ft Wayne, IN.
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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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