TradeStalker's
R.B.I. Trader's Update
11 / 11 / 2008
(Published Since 1996)
...............................................
Dateline: 6:28 pm eastern time, 11/11/2008
The key zone coming into Tuesday was at the 905.50-905.00
area on the SP futures. The SP futures opened at 905.00,
made a 905.50 high, and headed lower. That meant trouble and
new resistance areas were given. A reversal from just over
893.50 started a drop and the 882.00-880.50 support area
turned into a magnet. The SP futures went to 882.75 and
turned up. Updated resistance was given at 889.00 on the SP
futures and 1216 on the Nasdaq futures. The first bounce
reached 888.50 on the ES and 1216.25 on the NQ and they
dropped to 883.25 and 1210.00, respectively. After making
that double bottom, a sloppy bounce to 891.00 failed and the
market pulled back again. Then the Freddie-Fannie news hit
the tape and the SP sprinted to test the 905 area. The
market backed off but the SP futures turned up from 895.25
and then shot higher to 917.00 and the move fizzled and
reversed. The 895.25 level was reached on the first pullback
and a decent bounce to 906.25 followed, but it was sold and
the market rolled over again. The SP futures dropped to
886.25 and snapped back to 901.75 before fading into the
close.
Tuesday was a wild day for sure! The daily indicators are
either a bit oversold or neutral at the moment. However, the
moves on the upside are easily turned back, as if the market
doesn't like something else going on under the surface. On
the other side of the coin, the sharp drops are reversing
and bringing on the rally attempts. The market is in a big
range and another test of the 843 level on the SP futures
could be in the cards before a more sustainable rebound
occurs.
On Wednesday 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 minutes or so if
it's going to play out. If it does, then the first decent
pullback should set up a buying opportunity if a pullback
can hold the 887.00-886.50 area on the SP futures, or
quickly reverse if broken. If that is broken and not quickly
reversed, then the Tuesday lows would need to hold to avoid
potential trouble and another sharp downdraft.
The initial resistance is at the 905.50-906.50 area on the
SP futures and the 1239.00-1240.00 area on the Nasdaq
futures. If an early pop to those areas is not sold, then
the key hurdles on Wednesday are at the 916.00-917.00 area
on the SP futures and the 1251.25-1252.50 area on the Nasdaq
futures. If the market gets back up there and doesn't
reverse again, then the move could extend towards the
926.00-927.00 area on the SP futures and the 1261.50-1263.00
area on the Nasdaq futures.
The initial support is at the 887.00-886.50 area on the SP
futures and the 1214.50-1213.50 area on the Nasdaq futures.
If those areas are not defended on a pullback, then key
support is at the 882.00-880.50 area on the SP futures and
the 1206.50-1204.50 area on the Nasdaq futures. If the
market drops back down there, and cannot quickly turn back
up, then the next support would be down at the 877.00-876.00
area on the SP futures and the 1200.50-1199.50 area on the
Nasdaq futures. If those are tested and the move reverses,
it could start a decent rally. If they are easily broken,
then the 866.00-864.50 area on the SP futures and the
1190.25-1188.50 area on the Nasdaq futures would need to
hold, otherwise the downside could gather steam. If those
areas are broken, then a drop to the 834.00-833.00 area on
the SP futures should be bought, as it would coincide a
limit down move on Wednesday and that stall at support could
start a reversal.
December 2008 SP futures resistance
symbols: emini = esz8 / big contract =spz8
905.50-906.50
916.00-917.00
926.00-927.00
December 2008 SP futures support
symbols: emini = esz8 / big contract =spz8
887.00-886.50
882.00-880.50
877.00-876.00
866.00-864.50
834.00-833.00
December 2008 Nasdaq futures resistance
symbols: emini = nqz8 / big contract = ndz8
1239.00-1240.00
1251.25-1252.50
1261.50-1263.00
December 2008 Nasdaq futures support
symbols: emini = nqz8 / big contract = ndz8
1214.50-1213.50
1206.50-1204.50
1200.50-1199.50
1190.25-1188.50
December 2008 Dow futures resistance
symbols: emini = ymz8
8756-8763
8842-8849
8934-8942
December 2008 Dow futures support
symbols: emini = ymz8
8580-8575
8526-8517
8478-8472
8260-8254
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---------------------------
Good Trading,
Mike Reed
Copyright (c) 2008 by TradeStalker.com, Ft Wayne, IN.
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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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