TradeStalker's
R.B.I. Trader's Update
5/19/2008
(Published Since 1996)
...............................................
Dateline: 6:54 pm eastern time, 5/19/2008
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The SP futures opened slightly higher at 1426.75 on Monday,
and that was immediately sold and the market headed lower.
The SP futures fell to 1423.50 and turned right back up. The
move took the market to new highs for this leg up as the SP
futures reached the 1431.50-1432.50 area and the Nasdaq
futures reached its 2049.50-2051.00 area and the move
paused. The pullback off of those zones was very soft and
although the Nasdaq futures weren't as strong, the upside
continued and the move was trend-up into early afternoon.
The SP futures made a double top around 1440, but the
pullback was shallow and held just above the 1437.00 support
level and that kept the uptrends intact. The market went
back to test the highs, but the grind higher was reversed
after touching 1441.00 (just missed our 1441.75-1442.00
zone) and the break of updated support changed things. The
market sold off to 1427.00 on the SP futures while the
Nasdaq futures made a new low for the day at 2018.75 and the
downside momentum stalled. A feeble bounce fizzled just
under the updated 1432.50 level on the SP futures and then
they fell 10 points to 1422.00 before snapping back into the
close.
We get the PPI before the open on Tuesday. The market
bounced off of the last hour lows pretty well on Monday.
However, there is some work to do to keep this market going
on the upside. The SP and Nasdaq futures made higher highs
for 6 straight days. That's a good uptrend, however if the
Nasdaq is saying something with the "outside day" (a higher
high and lower low than Friday), then this move is near
termination.
As long as the market doesn't get over the initial
resistance areas, the downside has more to go on Tuesday.
Just beware that the market has been very resilient and if
there is further selling, it probably won't be a panic-type
of move and that means that a reversal from lower levels is
very likely.
On Tuesday, if there is early selling, be on alert for a
reversal in the first 20 to 40 minutes of trading.
Thereafter, the initial resistance zones will need to be
broken and held to get something going on the upside. If
that occurs and the market can rally to test, or slightly
exceed the Monday highs and then reverse, the short side
should offer an opportunity. A bounce that stalls/reverses
near the initial resistance areas would also set of a decent
shorting opportunity.
The initial resistance is at the 1432.00-1432.50 area on the
SP futures and the 2030.00-2031.00 area on the Nasdaq
futures. If those areas are exceeded and held, then the
1437.00-1437.50 area on the SP futures and the 2046.00-
2047.00 area on the Nasdaq futures should offer good
resistance if the market is still vulnerable. If those areas
are not a problem, then the 1441.00-1441.75 area on the SP
futures and the 2053.50-2054.50 area on the Nasdaq futures
would be next. If those highs from Monday are broken and the
market doesn't quickly reverse, then we could see a rally
towards the 1451-1454 area on the SP500 cash.
The initial support is at the 1422.00 level on the SP
futures and the 2008.25 level on the Nasdaq futures. If
those are broken, then we should see a test of the 1419.00-
1418.25 area on the SP futures and the 2004.00-2002.50 area
on the Nasdaq futures. If that occurs and the market turns
back up, then it could start a decent rally. However, if
those are broken and held, then the 1413.00-1412.00 area on
the SP futures and the 1996.00-1994.50 area on the Nasdaq
futures could be in the cards. If the market gets there and
cannot quickly turn around, then the dynamics will be
changed quite a bit and the market could head back towards
the 1403.00-1402.00 area on the SP futures.
June 2008 SP futures resistance
symbols: emini = esm8 / big contract =spm8
1432.00-1432.50
1437.00-1437.50
1441.00-1441.75
1451-1454 {SP500 cash}
June 2008 SP futures support
symbols: emini = esm8 / big contract =spm8
1422.00
1419.00-1418.25
1413.00-1412.00
1403.00-1402.00
June 2008 Nasdaq futures resistance
symbols: emini = nqm8 / big contract = ndm8
2030.00-2031.00
2046.00-2047.00
2053.50-2054.50
June 2008 Nasdaq futures support
symbols: emini = nqm8 / big contract = ndm8
2008.25
2004.00-2002.50
1996.00-1994.50
June 2008 Dow futures resistance
symbols: emini = ymm8
13071-13076
13107-13111
13140-13147
June 2008 Dow futures support
symbols: emini = ymm8
12993
12963-12958
12898-12892
June 2008 Russell futures resistance
symbols: emini = er2m8 / big contract = er2m8
741.60-742.00
745.40-745.80
748.50-749.00
June 2008 Russell futures support
symbols: emini = er2m8 / big contract = er2m8
735.80
733.00-732.60
728.80-728.20
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---------------------------
Good Trading,
Mike Reed
Copyright (c) 2008 by TradeStalker.com, Ft Wayne, IN.
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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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