TradeStalker's
R.B.I. Trader's Update
11 / 16 / 2008
(Published Since 1996)
...............................................
Dateline: 5:48 pm eastern time, 11/16/2008
The market opened lower on Friday and then bounced back to
test the Thursday close and then reversed back to the
downside. It was trend down until noon, where the SP futures
found buyers after reaching 868.50. After a bounce, the
market pulled back and turned up from higher highs and a
rally started slowly. The crawl turned into a buying frenzy
as the SP futures rallied to the 917.50-918.00 resistance
zone. The move fizzled after a high at 918.00 and when the
901-899 zone was cut through, the downside picked up steam
and sold off to make new lows for the day in the final
minutes of trading.
That was a heck of an end to the week. Off of the 3 pm
highs, the market lost 57.75 points on the SP futures, 82
points on the Nasdaq futures, and 557 points on the Dow
futures and they all settled at big discounts to the cash
close. The daily indicators were in a position to show good
bullish divergences if the market could hold gains for a day
or two. They still can do this, but if there isn't a good
rally that sticks by early this week, then we are likely
going to the 2002 low on the SP500 cash.
The market ended on a sour note for the bulls on Friday. If
there isn't a panic selloff coming, then early weakness will
set up a trade on the long side IF there is a reversal in
the first 20 minutes of trading. Aside from that, the
bounces should set up great shorting opportunities as soon
as the upside stalls and begins to roll over.
The initial resistance is at the 883.50-884.25 area on the
SP futures and the 1191.75-1193.50 area on the Nasdaq
futures. If the market gets back up there and the move
stalls out, it should set up a good shorting opportunity. If
those areas are not a problem, then the next hurdles would
be at the 894.00-895.50 area on the SP futures and the
1207.50-1208.50 area on the Nasdaq futures. If a bounce
doesn't reverse from those areas, then the 908.75-909.25
area on the SP futures and the 1224.00-1225.00 area on the
Nasdaq futures would be next. If those are exceeded and not
quickly reversed, then the 917.50-918.00 area on the SP
futures and the 1236.00-1237.00 area on the Nasdaq futures
are the major short term resistance zones.
The initial support is at the 858.50-858.00 area on the SP
futures and the 1146.25-1144.50 area on the Nasdaq futures.
If those are not held or quickly reversed, then the next
decent support is down around the 843.00-842.50 area on the
SP futures and the 1134.50-1133.50 area on the Nasdaq
futures. If the market gets down there and cannot reverse,
then we could see some panic selling. There should be some
support near the 823.00-822.00 area on the SP futures and
the 1108.50-1107.00 area on the Nasdaq futures. The key
support would be a test of the 817.50-816.75 area on the SP
futures and/or the 1098.00-1096.50 area on the Nasdaq
futures. That was the weekly and yearly low thus far and if
it's not reversed then we could be headed towards 803.00-
801.50 before there is a potential stabilizing force for the
market.
December 2008 SP futures resistance
symbols: emini = esz8 / big contract =spz8
883.50-884.25
894.00-895.50
908.75-909.25
917.50-918.00
December 2008 SP futures support
symbols: emini = esz8 / big contract =spz8
858.50-858.00
843.00-842.50
823.00-822.00
817.50-816.75
803.00-801.50
December 2008 Nasdaq futures resistance
symbols: emini = nqz8 / big contract = ndz8
1191.75-1193.50
1207.50-1208.50
1224.00-1225.00
1236.00-1237.00
December 2008 Nasdaq futures support
symbols: emini = nqz8 / big contract = ndz8
1146.25-1144.50
1134.50-1133.50
1108.50-1107.00
1098.00-1096.50
December 2008 Dow futures resistance
symbols: emini = ymz8
8602-8609
8693-8705
8841-8847
8911-8914
December 2008 Dow futures support
symbols: emini = ymz8
8328-8322
8209-8202
8002-7994
7945-7938
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Real Time subscribers can view these updates on
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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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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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