Saturday, September 03, 2005

TRADING Servive, EN FUEGO

This is the TradeStalker's Trial delayed edition.

Resistance to support, and back up again...

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TradeStalker's

R.B.I. Trader's Update

09 / 01 / 2005

(Published Since 1996)

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Dateline: 8:19 pm eastern time, 09/01/2005


Early strength was sold on Thursday and the market backed
off in the first hour of trading. The SP fell to 1216.75
while the Nasdaq futures touched its 1575 support, and then
the market turned up. In a mini parabolic run to the upside,
both the SP and Nasdaq futures peaked just under the
1229.75-1230.50 and 1591-1593 resistance zones and stalled.

The day's ranges were in place by noon, as the market
drifted lower into 2 pm. After getting down to 1218.75 on
the SP futures and 1577 on the Nasdaq futures, the market
bounced back to the middle of the days ranges and then
chopped sideways into the close.

The market is acting soggy and it looks like we could be in
for another early sell-off if Thursday's close is an
indication. Both the SP and Nasdaq futures were turned down
from pretty strong resistance areas on Thursday, and they
both settled at discounts to the cash indices.

It will likely be quite with thin conditions on Friday, not an ideal
environment. In any case, after the morning action it might be
good to get away early for the weekend.

If there is early weakness, the market should get its
footing on a test of the initial support areas and restart
its uptrend. If that doesn't occur, then things will have
changed and we may have seen a short term top on Thursday.
However, if the market *can* get down there early on Friday
and turn back up, then another run towards the Thursday
highs may be in the cards going into the long weekend.

Initial resistance is at the 1224.75-1225.25 area on the SP
futures and the 1584.50-1585.50 area on the Nasdaq futures.
The market needs to get over and hold those areas in order
to get out of the late trading range. A move up here that
gets reversed could set up a rough day for the market.
However, if those areas are cleared, then a run up to test the
1229.75-1230.50 and 1591-1593 areas is likely coming. If
the market gets up there again, and the move fizzles, it's a
gift on the short side.

The first good support is at the 1217.50-1216.75 area on the
SP futures and the 1575-1573 area on the Nasdaq futures. If
the market gets down here, and cannot turn around, the
downside could pick up some stream. The next good support
would be down around the 1211.75-1210.50 area on the SP
futures and/or the 1565-1563 area on the Nasdaq futures.

The next update will be on Monday night. Everyone have a
safe and enjoyable holiday weekend.


September 2005 SP futures resistance
symbols: emini = esu5 / big contract =SPu5

1224.75-1225.25
1229.75-1230.50


September 2005 SP futures support
symbols: emini = esu5 / big contract =SPu5

1217.50-1216.75
1211.75-1210.50


September 2005 Nasdaq futures resistance
symbols: emini = nqu5 / big contract = ndu5

1584.50-1585.50
1591-1593


September 2005 Nasdaq futures support
symbols: emini = nqu5 / big contract = ndu5

1575-1573
1565-1563


September 2005 Dow futures resistance
symbols: emini = ymu5

10479-10487
10528-10636


September 2005 Dow futures support
symbols: emini = ymu5

10427-10419
10371-10355



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Good Trading,
Mike Reed

Copyright (c) 2005 by TradeStalker.com, Ft Wayne, IN.
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The foregoing has been prepared solely for informational
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