TradeStalker's
R.B.I. Trader's Update
10 / 26 / 2008
(Published Since 1996)
...............................................
Dateline: 6:14 pm eastern time, 10/26/2008
After being locked limit down before the open on Friday, the
limits came off on the open and the SP futures traded at
835.00 in the pit and turned up immediately. The run up took
the SP futures up to 888.00 just before noon. The market
pulled back and fell to 857.25 with about 2 hours left in
the trading day. The market rallied back to the 880 area and
reversed, but then that was exceeded and the SP futures
popped to 896.50 and the move fizzled. Selling came in in
the last hour and the market sold off to 862.50 by the
close.
Despite what could have been a good low on Friday, the
market is still acting poorly. It seems that most everyone
is calling a bottom down here, but before getting out of
trouble the market needs to get above the Friday highs and
not reverse per usual of late. We should also get good
volume on a rally that sticks in order to believe it.
On Monday look for a buying opportunity if there is early
weakness and it reverses back up within the first 20-40
minutes. If that plays out, beware that the first decent
bounce will likely be sold into as soon as the move fizzles.
The trends and momentum favor the bears, so unless the
market gets over the Friday highs and sticks, the short side
should continue to offer the better odds trades.
The initial resistance is at the 893.00 level on the SP
futures and the 1223.25 level on the Nasdaq futures. If
those are exceeded, then the 898.00-899.00 area on the SP
futures and the 1229.50-1230.50 area on the Nasdaq futures
is the key resistance on Monday. If the market gets up there
and doesn't have a problem getting through those areas, then
things could be changing. The next hurdles would be at the
905.50-906.00 area on the SP futures and the 1238.50-1340.25
area on the Nasdaq futures. If the move over the Friday
highs is a fake-out, then a reversal could occur from there.
If the market plows through those areas then the next key
resistance is up at the 922.50-923.50 area on the SP futures
and the 1255.50-1257.00 area on the Nasdaq futures.
The initial support is at the 857.00 level on the SP futures
and the 1180.50 level on the Nasdaq futures. If those break
then there should be strong support near the 855.00-854.50
area on the SP futures and the 1174.00-1173.00 area on the
Nasdaq futures if the market is not going to cave in again.
If those areas are broken, and the market doesn't quickly
turn back up, then the 840.00-838.50 area on the SP futures
and the 1158.50-1156.50 area on the Nasdaq futures should be
magnets. If those are broken, then major support is at the
835.00-834.50 area on the SP futures and the 1150.75-1149.75
area on the Nasdaq futures. If those are broken and not
reversed, then a drop towards the 814.00-812.00 area on the
SP futures, and possibly towards the 2002 low on the SP500
cash at 768.63 before a bottom is put in.
December 2008 SP futures resistance
symbols: emini = esz8 / big contract =spz8
893.00
898.00-899.00
905.50-906.00
922.50-923.50
December 2008 SP futures support
symbols: emini = esz8 / big contract =spz8
857.00
855.00-854.50
840.00-838.50
835.00-834.50
814.00-812.00
768.63 {SP500 cash}
December 2008 Nasdaq futures resistance
symbols: emini = nqz8 / big contract = ndz8
1223.25
1229.50-1230.50
1238.50-1340.25
1255.50-1257.00
December 2008 Nasdaq futures support
symbols: emini = nqz8 / big contract = ndz8
1180.50
1174.00-1173.00
1158.50-1156.50
1150.75-1149.75
December 2008 Dow futures resistance
symbols: emini = ymz8
8539
8564-8574
8639-8645
8784-8792
December 2008 Dow futures support
symbols: emini = ymz8
8210
8190-8184
8055-8049
8005-7998
---------------------------
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