TradeStalker's
R.B.I. Trader's Update
10 / 22 / 2008
(Published Since 1996)
...............................................
Dateline: 7:17 pm eastern time, 10/22/2008
Click Here to visit our site for FREE trading articles and
videos!
The market gapped down on the open on Wednesday and the move
reversed after about 30 minutes of trading. The SP futures
turned up from 910.50 and rallied to the 931.00-932.00
updated resistance area. A wedge pattern built and after
turning down from 931.00, the market rolled over and fell to
906.00 by early afternoon. A bounce failed at 916.50 and the
market hit the skids. A sharp drop to 872.50 was reversed
with about 15 minutes left as the market snapped back
sharply into the close.
The SP500 and Nasdaq 100, among other averages made new low
closes for the year. The Dow was the exception. Meanwhile,
my internal indicators all have higher highs than the
October 10th low. That's a good bullish divergence and under
normal conditions this would be very bullish. The closing
Trin was also 5.00, a sign of some capitulation. This
occurred a week ago on October 15th and the market rallied
nicely on the 16th.
That said, the market has a lot going for it at this
juncture and needs to make good on this set up, otherwise
things are in bad shape and there could be another 10% to go
on the downside. As long as the market can hold the
Wednesday lows the bulls should be in the driver's seat. The
market did come flying back off of those Wednesday lows,
which was a good "save" for the bulls. The market went down
to the lows on Wednesday with some good momentum, so a
retest without the same momentum would be a key test of the
strength, or lack thereof, of the market short term.
On Thursday look for early strength to set up a shorting
opportunity as soon as the upside stalls out and begins to
roll over. If that plays out, then the Wednesday lows would
need to hold on a pullback. If those areas do not hold, then
the market could head for the 840.00-838.50 area on the SP
futures, maybe even lower, before a decent turn around
occurs.
The initial resistance is at the 910.50-911.00 area on the
SP futures and the 1254.00-1255.00 area on the Nasdaq
futures. If the market pops up there and reverses on
Thursday, then a test of the Wednesday lows is still
possible in the morning. If those are exceeded then the
trends can turn back up and the next resistance would be at
the 916.00-916.50 area on the SP futures and the 1264.00-
1264.50 area on the Nasdaq futures. If the market gets up
there and doesn't have trouble getting through those areas,
then the key hurdles on Thursday are at the 930.50-931.50
area on the SP futures and the 1282.75-1284.50 area on the
Nasdaq futures. If those are not broken, then the market
still has work to do to avoid trouble. If those are exceeded
and held, then a rally to the 950.50-951.50 area on the SP
futures and the 1303.75-1305.00 area on the Nasdaq futures
is possible.
The initial support is at the 890.50-889.75 area on the SP
futures and the 1234.00-1233.00 area on the Nasdaq futures.
If those areas do not hold, then a test of the 872.50-872.00
area on the SP futures and the 1208.50-1207.50 area on the
Nasdaq futures would need to be quickly reversed if the
market is going to avoid trouble. If those areas are tested
and the market doesn't reverse, then the door is opened for
a drop towards the 840.00-838.50 area on the SP futures and
the 1176.50-1174.50 area on the Nasdaq futures. If the
market gets down there and doesn't quickly reverse, then a
drop towards the 812.50-811.50 area on the SP futures and
the 1144.50-1142.50 area on the Nasdaq futures could be in
the cards.
December 2008 SP futures resistance
symbols: emini = esz8 / big contract =spz8
910.50-911.00
916.00-916.50
930.50-931.50
950.50-951.50
December 2008 SP futures support
symbols: emini = esz8 / big contract =spz8
890.50-889.75
872.50-872.00
840.00-838.50
812.50-811.50
December 2008 Nasdaq futures resistance
symbols: emini = nqz8 / big contract = ndz8
1254.00-1255.00
1264.00-1264.50
1282.75-1284.50
1303.75-1305.00
December 2008 Nasdaq futures support
symbols: emini = nqz8 / big contract = ndz8
1234.00-1233.00
1208.50-1207.50
1176.50-1174.50
1144.50-1142.50
December 2008 Dow futures resistance
symbols: emini = ymz8
8599-8607
8703-8707
8808-8816
8989-9002
December 2008 Dow futures support
symbols: emini = ymz8
8449-8440
8308-8302
8022-8012
7791-7783
---------------------------
REMINDER:
Real Time subscribers can view these updates on
the web at this site:
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.
www.TradeStalker.com
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.
*************************************************
No comments:
Post a Comment