TradeStalker's
R.B.I. Trader's Update
11 / 25 / 2008
(Published Since 1996)
...............................................
Dateline: 6:48 pm eastern time, 11/25/2008
NOTE: Due to a dental appointment there will be no intraday
updates after 11 a.m. on Wednesday. Also, Friday the market
is only opened for half of a day. So, the next update will
be on Sunday evening, November 30th. We want to wish you all
a happy Thanksgiving Holiday.
The 872.50-874.00 area on the SP futures and 1172.75-1174.00
area on the Nasdaq futures were reached and rejected just
before stocks opened on Tuesday. After the open, the SP
futures made a 1-2-3 top about 40 minutes into the day, and
the break of 855 ushered in a selloff to the key support at
the 838.50-837.50. An 836.25 low was quickly reversed, but
the bounce fizzled at the 850 area, setting up a shorting
opportunity and the SP futures dropped to a new low. Buying
a reversal worked all day, and after turning back up through
8300 on the Dow set up an entry on the long side. In the
last update the I stated:
"If this rally stalls and reversed from near 863-864 it
could set up a shorting opportunity."
The SP futures reached 864.25 and stalled out, and then
dropped almost 12 points into the close.
The 3 day rally has the market back to the area from where
the drop to last week's lows started in earnest. My daily
indicators are very overbought, and at spots where the
rallies have reversed also. So, treat the Tuesday highs as
the top of a very large range. A bounce back towards the top
side sets up a good risk/reward trade on the short side. On
the other side, as long as a selloff doesn't break the
Tuesday lows and stick, the pullbacks that reverse should
set up good buying opportunities. That occurred twice on
Tuesday by using the 8300 level on the Dow cash as a
trigger. When that level was broken, and then price reversed
back up through that level, the market had a sluggish first
bounce but then got legs and rallied nicely. If that 8300
level is broken and not quickly reversed again on Thursday,
then things will change and the pressure would be on.
The initial resistance is at the 863.50-864.25 area on the
SP futures and 1055.25-1156.00 area on the Nasdaq futures.
If the market can not get through those areas on a bounce,
then it's weak and a decent pullback is likely. However, if
those areas are exceeded, then the 870.00 level on the SP
futures and 1164.00 level on the Nasdaq futures would be
next. If those do not cause any trouble, then the big
hurdles would be around the 872.50-874.00 area on the SP
futures and 1168.75-1169.50 area on the Nasdaq futures. If
the market gets up there, and the move fizzles out and
reverses, then we could have a decent selloff coming.
However, if something sparks a good rally, and the market is
breaking out of the top side of this big range, then a run
up towards the 881.50-882.50 area on the SP futures and
1182.50-1183.75 area on the Nasdaq futures is possible.
The initial support is at the 848.00 level on the SP futures
and 1132.75 level on the Nasdaq futures. If those are
broken, then a test of the 834.00-833.50 area on the SP
futures and 1118.50-1117.75 area on the Nasdaq futures would
be in the cards. The market reversed from there on Tuesday,
so if those areas are not defended, then the downside could
accelerate. There should be good support around the 825.50-
824.75 area on the SP futures and 1110.75-1109.50 area on
the Nasdaq futures. If the market gets down there and can
not turn around, then a trip down to test the 818.00-817.00
area on the SP futures and 1093.00-1092.00 area on the
Nasdaq futures is a good possibility. If those are tested
and can not hold, then we should see a pullback to test the
802.50-802.00 area on the SP futures and 1077.50-1075.00
area on the Nasdaq futures.
NOTE: Due to a dental appointment there will be no intraday
updates after 11 a.m. on Wednesday. Also, Friday the market
is only opened for half of a day. So, the next update will
be on Sunday evening, November 30th. We want to wish you all
a happy Thanksgiving Holiday.
December 2008 SP futures resistance
symbols: emini = esz8 / big contract =spz8
863.50-864.25
870.00
872.50-874.00
881.50-882.50
December 2008 SP futures support
symbols: emini = esz8 / big contract =spz8
848.00
834.00-833.50
825.50-824.75
818.00-817.00
802.50-802.00
December 2008 Nasdaq futures resistance
symbols: emini = nqz8 / big contract = ndz8
1055.25-1156.00
1064.00
1168.75-1169.50
1182.50-1183.75
December 2008 Nasdaq futures support
symbols: emini = nqz8 / big contract = ndz8
1132.75
1118.50-1117.75
1110.75-1109.50
1093.00-1092.00
1077.50-1075.00
December 2008 Dow futures resistance
symbols: emini = ymz8
8536-8544
8597
8627-8632
8702-8709
December 2008 Dow futures support
symbols: emini = ymz8
8388
8275-8268
8216-8211
8134-8128
8008-8004
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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
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).
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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