TradeStalker's
R.B.I. Trader's Update
10 / 30 / 2008
(Published Since 1996)
...............................................
Dateline: 6:58 pm eastern time, 10/30/2008
We came in Thursday looking to short early strength. The
huge up open of 29 points on the SP futures couldn't stick
and the move fizzled in the first 30 minutes and reversed.
Off of a 963.50 high, the market traded in trend down mode
until just after noon. The SP futures reached 926.75 and
reversed and a very choppy rally started. There were trades
on both sides, but the bulls won out as the market ended the
day by testing the first half-hour highs.
The dips are being bought since the double bottom Monday.
The market is still inside of Wednesday's last 30 minute
range and the top side is just a bit above current levels.
The Nasdaq futures matched Wednesday's high on Thursday. The
Nasdaq has been leading the way, so a test of the Wednesday
highs on the SP and Dow could be in the cards before the
market either breaks out or tops out.
On Friday look for a shorting opportunity if there is early
strength as soon as the move stalls and begins to roll over.
That should occur in the first 20-40 minutes if there is
going to be a good odds trade. If that plays out, look for a
buying opportunity if the first decent pullback can hold the
initial support. If the initial support is broken and the
market cannot quickly reverse back up, then a transition to
the downside could be underway.
The initial resistance is at the 963.50-964.00 area on the
SP futures and the 1345.75-1346.75 area on the Nasdaq
futures. If those are not trouble, then the door is opened
for a run up towards the 971.00-972.00 area on the SP
futures and the 1355.50-1357.00 area on the Nasdaq futures.
If those areas are tested and the move fails, it could be
terminal short term and start a decent pullback. However, if
the market gets up there and doesn't have trouble getting
through those areas, then the move could extend towards the
981.00-982.00 area on the SP futures and the 1366.50-1368.00
area on the Nasdaq futures. If those are not sold, then the
987.50-988.50 area on the SP futures and the 1374.50-1376.00
area on the Nasdaq futures is the last good resistance
before a test of the 998.50-1000.50 area on the SP futures.
The initial support is at the 935.50-935.00 area on the SP
futures and the 1314.50-1313.50 area on the Nasdaq futures.
A pullback should hold near those areas if the market is
going to stay out of trouble. The next support would be at
the 927.00-926.00 area on the SP futures and the 1302.00-
1301.00 area on the Nasdaq futures. If those are not bought,
then major 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 the market gets back there and does not reverse, then the
downside isn't over and we could see the 914.00-913.00 area
on the SP futures and the 1261.50-1260.25 area on the Nasdaq
futures.
December 2008 SP futures resistance
symbols: emini = esz8 / big contract =spz8
963.50-964.00
971.00-972.00
981.00-982.00
987.50-988.50
998.50-1000.50
December 2008 SP futures support
symbols: emini = esz8 / big contract =spz8
935.50-935.00
927.00-926.00
919.50-918.50
914.00-913.00
December 2008 Nasdaq futures resistance
symbols: emini = nqz8 / big contract = ndz8
1345.75-1346.75
1355.50-1357.00
1366.50-1368.00
1374.50-1376.00
December 2008 Nasdaq futures support
symbols: emini = nqz8 / big contract = ndz8
1314.50-1313.50
1302.00-1301.00
1290.00-1288.50
1261.50-1260.25
December 2008 Dow futures resistance
symbols: emini = ymz8
9235-9243
9344-9349
9432-9438
9478-9484
December 2008 Dow futures support
symbols: emini = ymz8
8994-8990
8949-8941
8842-8838
8802-8798
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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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