TradeStalker's
R.B.I. Trader's Update
11 / 17 / 2008
(Published Since 1996)
...............................................
Dateline: 6:43 pm eastern time, 11/17/2008
This publication's primary focus is trading the index
futures. However, you can also use my nightly updates to
trade the following ETF's (SPY), (QQQQ), (SDS), (QID),
(DIA), and (DOG).
The market opened lower on Monday and after a feeble bounce,
the market sold off until about 40 minutes into the day. The
SP futures reached 847.00 and then turned up and a rally
took hold. After reaching 881.75 around 1 pm, the SP futures
pulled back to 861.50 and then began to chop back and forth
within a pretty big range. After over 2 hours of bouncing
between 861 and 874, the lower end of the range broke and
the 855-854 target was easily met as the market sold off to
the early lows at the close.
The rallies are not able to stick, still. The internal
gauges are getting oversold, however the daily charts don't
look very good. In order to get out of trouble, the market
will need to get over the Monday afternoon range highs and
not quickly reverse. That is at the 874.00 level on the SP
futures, 1181.50 on the Nasdaq futures, and 8500 on the Dow
cash. If all of those levels are broken and the market
doesn't quickly reverse, then we could see a decent squeeze
to the upside. Absent that, the bounces will still set up
shorting opportunities as soon as the upside move stalls out
and the market begins to roll over.
The initial resistance is at the 861.50-863.00 area on the
SP futures and the 1166.50-1168.75 area on the Nasdaq
futures. If those are not rejected, then the key hurdles on
Tuesday would be at the 873.00-874.00 area on the SP futures
and the 1180.00-1181.50 area on the Nasdaq futures. Also,
the 8500 level on the Dow cash will need to be exceeded. If
the market gets back up there and those areas are not a
problem, then the door is opened for a rally towards 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 up there and
doesn't reverse, then there should be strong resistance at
the 894.50-895.75 area on the SP futures and the 1207.50-
1208.50 area on the Nasdaq futures.
The initial support is at the 847.50-847.00 area on the SP
futures and the 1151.00-1150.00 area on the Nasdaq futures.
If those areas do not hold, then the next decent support is
at the 843.00-842.50 area on the SP futures and the 1144.50-
1143.50 area on the Nasdaq futures. If there isn't a
reversal from down there, then the 837.00-836.50 area on the
SP futures and the 1134.50-1133.50 area on the Nasdaq
futures should be in the cards. If the market cannot rally
from those areas, then we could see an air-pocket type drop
towards the 823.00-822.00 area on the SP futures and the
1108.50-1107.00 area on the Nasdaq futures. If those are
reached and the market cannot reverse, then we are likely
heading back towards the 817.50-816.75 area on the SP
futures and the 1098.00-1096.50 area on the Nasdaq futures.
If the market gets back down there, be alert for a reversal.
If the market gets down there again and doesn't stop
dropping, then we could be on the way towards the 768 level
on the SP500 cash.
December 2008 SP futures resistance
symbols: emini = esz8 / big contract =spz8
861.50-863.00
873.00-874.00
883.50-884.25
894.50-895.75
December 2008 SP futures support
symbols: emini = esz8 / big contract =spz8
847.50-847.00
843.00-842.50
837.00-836.50
823.00-822.00
817.50-816.75
768 {SP500 cash}
December 2008 Nasdaq futures resistance
symbols: emini = nqz8 / big contract = ndz8
1166.50-1168.75
1180.00-1181.50
1191.75-1193.50
1207.50-1208.50
December 2008 Nasdaq futures support
symbols: emini = nqz8 / big contract = ndz8
1151.00-1150.00
1144.50-1143.50
1134.50-1133.50
1108.50-1107.00
1098.00-1096.50
December 2008 Dow futures resistance
symbols: emini = ymz8
8361-8369
8488-8496
8578-8584
8693-8705
December 2008 Dow futures support
symbols: emini = ymz8
8236-8231
8209-8202
8165-8159
8002-7994
7945-7938
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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.
www.TradeStalker.com
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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