.................................................
TradeStalker's
R.B.I. Trader's Update
11 / 23 / 2008
(Published Since 1996)
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Dateline: 5:39 pm eastern time, 11/23/2008
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 higher on Friday but the early strength
was sold and the market sold off to new lows for the year.
The SP futures reversed from a 739.00 low and the market
bounced back into lunchtime trading. That move fizzled and
the market fell back to test the lows with about an hour
left in trading. After a couple of drops under 745.00 on the
SP futures were quickly reversed, the market turned up in
the last hour of trading. The new Treasury Secretary was
named and it caused that spark that was needed to get a good
rally going. In the last hour the market took of to the
upside as the SP futures made it to 802.50 before backing
off to settle 8 points under the cash close.
The market saw levels that finally are looking attractive
for the longer term, on Friday. The rally might turn out to
be one of those that doesn't stick, but should the market
test the Friday lows, there will be buyers ready to step
back to the plate. The market made a good start to a
bottoming process on Friday. With a short Holiday week,
there should be more volatility and likely some good set-ups
on both sides.
The market rallied 61 points on the SP futures, 75 points on
the Nasdaq futures and 675 points on the Dow futures from
the late afternoon lows on Friday. The futures closed well
under fair value on Friday, so if there is a pop up on the
open and the move reverses in the first 20-40 minutes of
trading, it should set up a good shorting opportunity.
Thereafter, the first decent pullback should set up a buying
opportunity as soon as the downside stalls/ reverses. Look
for that type of action early on Monday. As long as a
pullback doesn't break and hold under the 765.50-764.00 area
on the SP futures, the market will be "okay" and the bulls
will get the benefit of any doubts. However, if that area
doesn't hold, or quickly reverse if broken, then we'll
likely go test that 745 level and see if buyers are still
ready to pull the trigger, or keep their hands off of the
buy
button.
The initial resistance is at the 804.00-805.00 area on the
SP futures and the 1102.00-1103.25 area on the Nasdaq
futures. If there is a pop to those areas in the early going
and the move reverses, it would set up a good shorting
opportunity. However, if those areas are not a problem, then
it would open the door for the market to move towards the
819.50-820.75 area on the SP futures and the 1116.50-1117.50
area on the Nasdaq futures. If the market gets that far,
beware of a potential reversal. If that doesn't happen, and
the market is strong enough to plow through those areas,
then a move towards the 825.75-826.25 area on the SP futures
and the 1127.50-1129.50 area on the Nasdaq futures could be
in the cards. That would be as far as a rally should go
unless there is a melt-up type of rally. In that case watch
for the 835.50-837.00 area on the SP futures and the
1141.00-1142.00 area on the Nasdaq futures to be key
resistance on Monday.
The first good support is at the 774.25-773.25 area on the
SP futures and the 1057.50-1056.00 area on the Nasdaq
futures. If the market gets down there in the early going
and the move stalls out and turns up, it could start a good
rally back. If those areas are broken and not quickly
reversed, then the 765.50-764.00 area on the SP futures and
the 1048.25-1047.00 area on the Nasdaq futures would be
next, and should hold if the Friday rally was the start of
something for the bulls. If those zones do not hold, then a
drop towards the 745.00-742.50 area on the SP futures and
the 1023.50-1022.00 area on the Nasdaq futures should
quickly reverse unless the market is in trouble again. If
the market doesn't reverse from down there, then it means
buyers are still on boycott and only a reversal from near
the 739.00 level on the SP futures and the 1017.75 level on
the Nasdaq futures can save the market from another big down
day.
December 2008 SP futures resistance
symbols: emini = esz8 / big contract =spz8
804.00-805.00
819.50-820.75
825.75-826.25
835.50-837.00
December 2008 SP futures support
symbols: emini = esz8 / big contract =spz8
774.25-773.25
765.50-764.00
745.00-742.50
739.00
December 2008 Nasdaq futures resistance
symbols: emini = nqz8 / big contract = ndz8
1102.00-1103.25
1116.50-1117.50
1127.50-1129.50
1141.00-1142.00
December 2008 Nasdaq futures support
symbols: emini = nqz8 / big contract = ndz8
1057.50-1056.00
1048.25-1047.00
1023.50-1022.00
1017.75
December 2008 Dow futures resistance
symbols: emini = ymz8
8089-8098
8174-8178
8224-8229
8375-8382
December 2008 Dow futures support
symbols: emini = ymz8
7764-7758
7679-7670
7482-7476
7436
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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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