TradeStalker's
R.B.I. Trader's Update
11 / 4 / 2008
(Published Since 1996)
...............................................
Dateline: 6:31 pm eastern time, 11/4/2008
A higher open was sold into on Tuesday and the market sold
off for about 30 minutes and then turned up. A rally took
the SP futures to 1005.50 and after a pullback, a double top
was made. The SP futures dropped through the 992 support and
reached 985.50 with just over an hour left in trading. The
market reversed and the last hour rally took the market back
to test the highs by the close.
It's hard to tell how the market will handle things on
Wednesday. The internal gauges are at overbought extremes.
For one example, the commonly used McClellan oscillator
closed at +319 on Tuesday. The short term extremes are +/-
250, so that's very overbought. The last time it was even
close to that level was February 2nd, when it reached +261.
The short term volume ratios are in similar condition.
Prices are reasonable resistance areas also. It looks like
the late day lows from Wednesday will need to hold on a
pullback, otherwise the market will be vulnerable and could
head towards the 974.50-973.50 area on the SP futures. If
that zone isn't bought on a pullback, then things could be
changing again on the short term.
On Wednesday, look for a shorting opportunity if there is
early strength as soon as the upside stalls/reverses. If
that plays out, look for a buying opportunity if the initial
support at the 997.50-996.50 area on the SP futures can
hold. If that area doesn't hold, then selling bounces will
be in order. Use the support and resistance areas below for
potential turning points.
December 2008 SP futures resistance
symbols: emini = esz8 / big contract =spz8
1005.50-1006.50
1009.50-1010.50
1017.50-1018.50
1023.00-1024.00
December 2008 SP futures support
symbols: emini = esz8 / big contract =spz8
997.50-996.50
986.50-985.50
980.00
974.50-973.50
December 2008 Nasdaq futures resistance
symbols: emini = nqz8 / big contract = ndz8
1382.50-1384.00
1389.50-1390.50
1397.50-1399.00
1408.50-1410.25
December 2008 Nasdaq futures support
symbols: emini = nqz8 / big contract = ndz8
1369.00-1368.00
1354.50-1353.25
1346.50
1340.50-1339.00
December 2008 Dow futures resistance
symbols: emini = ymz8
9622-9628
9667-9674
9744-9753
9797-9804
December 2008 Dow futures support
symbols: emini = ymz8
9523-9519
9441-9433
9409
9338-9337
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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.
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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.
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