TradeStalker's
R.B.I. Trader's Update
10 / 21 / 2008
(Published Since 1996)
...............................................
Dateline: 6:57 pm eastern time, 10/21/2008
The odds favored lower prices on Tuesday and the SP futures
opened almost 20 points lower and the move reversed. Off of
966.50, the SP futures rallied to 986.00 and the move
fizzled and the market rolled over. A drop to 952.75 was
turned back up and the market rallied into the last hour.
The SP futures reached 983.75, backed off to 875.25, and
then bounced and turned down from a lower high at 983.25 and
that made a 1-2-3 top and the market rolled over again. The
selloff was pretty aggressive as the market dropped to
test/break the early afternoon lows and then the futures
firmed into the close.
The market is in neutral territory on the internal gauges.
The Tuesday highs need to be exceeded and held on a closing
basis to get the market into a position to break out of the
current trading range. If we get a rally that gets back up
there, but then rolls over again, it could be terminal and
begin a fall towards the low 900's before the market gets
footing for a good rally.
Earnings reports after the close has the futures all over
the place. Over the last 9 days the SP futures have opened
12 points or more above or below the prior day's close. We
could get another big open on Wednesday. If the market opens
lower, it should set up a good buying opportunity as soon as
the move reverses. If the market opens higher, then it would
set up a shorting opportunity if the move reverses in the
first 20 minutes or so. Thereafter, look for a buying
opportunity when the drops stall out and turn up and
shorting opportunities on the rallies when they
stall/reverse until there is a good breakout of the Tuesday
ranges.
There is minor resistance at the 960.00 level on the SP
futures and the 1296.00 level on the Nasdaq futures. If
those are cleared, they could then turn into support on a
pullback. The first big hurdles would be at the 966.50-
967.50 area on the SP futures and the 1318.50-1320.00 area
on the Nasdaq futures. If those are cleared, then there
should be some resistance near the 975.00 level on the SP
futures and the 1328.50 level on the Nasdaq futures. If
those are exceeded, then the Tuesday high areas at 983.00-
984.00 on the SP futures and 1342.50-1345.00 on the Nasdaq
futures would be key resistance. If the market can get over
those areas and not quickly reverse, then we could go for
the 997.75-998.25 area on the SP futures and/or the 1370.50-
1371.75 area on the Nasdaq futures.
There should be good support at the 951.50-951.00 area on
the SP futures and the 1281.00-1280.50 area on the Nasdaq
futures. If those are tested and not defended, then there is
something wrong and the key support down at the 944.00-
943.00 area on the SP futures and the 1273.00-1272.00 area
on the Nasdaq futures could be tested. If the market gets
there and cannot turn around quickly, then a drop towards
the 932.50-931.50 area on the SP futures and the 1264.25-
1262.50 area on the Nasdaq futures would be the next
support, and must hold to avoid a big down day. If those do
not hold, then we could fall towards the 919.00-918.00 area
on the SP futures and the 1252.75-1250.50 area on the Nasdaq
futures. If those do not hold, then only the 906.00-904.50
area on the SP futures is the last good support on
Wednesday.
December 2008 SP futures resistance
symbols: emini = esz8 / big contract =spz8
960.00
966.50-967.50
975.00
983.00-984.00
997.75-998.25
December 2008 SP futures support
symbols: emini = esz8 / big contract =spz8
951.50-951.00
944.00-943.00
932.50-931.50
919.00-918.00
906.00-904.50
December 2008 Nasdaq futures resistance
symbols: emini = nqz8 / big contract = ndz8
1296.00
1318.50-1320.00
1328.50
1342.50-1345.00
1370.50-1371.75
December 2008 Nasdaq futures support
symbols: emini = nqz8 / big contract = ndz8
1281.00-1280.50
1273.00-1272.00
1264.25-1262.50
1252.75-1250.50
December 2008 Dow futures resistance
symbols: emini = ymz8
9045
9127-9134
9185
9280-9286
9372-9379
December 2008 Dow futures support
symbols: emini = ymz8
8989-8983
8927-8919
8804-8797
8688-8680
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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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