TradeStalker's
R.B.I. Trader's Update
10 / 29 / 2008
(Published Since 1996)
...............................................
Dateline: 7:03 pm eastern time, 10/29/2008
After a flat open on Wednesday, the market pulled back and
then reversed and poked over initial the resistance. That
move stalled and reversed, but the 927 level on the SP
futures held and a decent rally started. The move lasted
into the early afternoon, but after the SP futures reached
the 954.50-955.00 zone before the Fed release (954.75 high)
they dropped 28.75 points to 926.00 just after the Fed
release. The market turned back up, and after forming a
triangle pattern, the market broke out to the upside. The SP
futures rallied to just under the 972.00-972.50 resistance
area and after a dip, a test of the high failed. The SP
futures reversed from 971.25 and dropped 52.25 points in 10
minutes to 919.00 before a bounce into the close.
The Fed day often times marks a short term top or bottom.
The rejection and subsequent sharp drop from the 97125 level
on the SP futures and 1346.75 level on the Nasdaq futures
puts the ball back in the bears' hands short term. On
Friday, The bounces should set up good shorting
opportunities until the market goes far enough lower to
attract new buying. So, if there is early strength, look to
get short as soon as the upside stalls and begins to
reverse. If there is a sizeable selloff and then the market
gets footing at lower levels, then a reversal back up could
set up a good trade on the long side.
The initial resistance is at the 936.00-937.00 area on the
SP futures and the 1305.50-1306.50 area on the Nasdaq
futures. If those are exceeded, then the 954.00-954.50 area
on the SP futures and the 1322.50-1323.75 area on the Nasdaq
futures should be tough to get through if a high was put in
place on Wednesday. If the market doesn't reverse from up
there, then the Wednesday highs at the 971.00-972.00 area on
the SP futures and the 1345.50-1346.75 area on the Nasdaq
futures will need to be cut through to avoid trouble. If
those are broken, then the 981.00-982.00 area on the SP
futures and the 1355.50-1357.00 area on the Nasdaq futures
could be seen on Thursday.
The initial support is at the 919.50-918.50 area on the SP
futures and the 1290.00-1288.50 area on the Nasdaq futures.
If those areas are not defended, then it could accelerate
the downside. The next support is at the 914.00-913.00 area
on the SP futures and the 1261.50-1260.25 area on the Nasdaq
futures. If the market is going to avoid trouble, those
areas should hold. If they do not, then a drop towards the
901.00-899.50 area on the SP futures and the 1240.50-1238.00
area on the Nasdaq futures should be about as far as a
healthy pullback should go. If those are not held, then the
894.00-893.00 area on the SP futures and the 1228.50-1227.75
area on the Nasdaq futures would be key support. The market
will be back in trouble if those are broken, and the last
good support would be near the 875.00 level on the SP
futures and the 1208.50 level on the Nasdaq futures. If
those are reached, it would be a great buying opportunity if
there is a reversal.
December 2008 SP futures resistance
symbols: emini = esz8 / big contract =spz8
936.00-937.00
954.00-954.50
971.00-972.00
981.00-982.00
December 2008 SP futures support
symbols: emini = esz8 / big contract =spz8
919.50-918.50
914.00-913.00
901.00-899.50
894.00-893.00
875.00
December 2008 Nasdaq futures resistance
symbols: emini = nqz8 / big contract = ndz8
1305.50-1306.50
1322.50-1323.75
1345.50-1346.75
1355.50-1357.00
December 2008 Nasdaq futures support
symbols: emini = nqz8 / big contract = ndz8
1290.00-1288.50
1261.50-1260.25
1240.50-1238.00
1228.50-1227.75
1208.50
December 2008 Dow futures resistance
symbols: emini = ymz8
9007-9013
9172-9178
9344-9349
9432-9438
December 2008 Dow futures support
symbols: emini = ymz8
8842-8838
8802-8798
8649-8638
8580-8572
8443
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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.
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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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