TradeStalker's
R.B.I. Trader's Update
5/21/2008
(Published Since 1996)
...............................................
Dateline: 6:30 pm eastern time, 5/21/2008
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The early game-plan was to short early strength as soon as
the upside fizzled/reversed and the market obliged as the SP
futures poked up to 1419.25 (1 tick over the 1418.50-1419.00
initial resistance) and the stall reversed and the selloff
was underway. The 1413.00-1412.50 area gave the market a
temporary bounce, but that move reversed than another leg
down began. The market was in trouble and didn't show a hint
of turning around until the SP futures fell to the 1393-1392
zone. They reached 1391 and then grudging turned things
around, but the updated support at 1398.25-1397.50 turned
into resistance on the bounce off of the lows, and the
market went back to make new lows near the close. The SP
futures reached the small support at the 1388.50-1388.00
zone (making a 1388.00 low) and then moved sideways into the
close.
From the highs on Monday afternoon to the lows on Wednesday
the Dow cash lost 563 points, the SP futures lost 52.50
points, and the Nasdaq futures lost 100.25 points. The
complacency from just two days ago has shifted quite a bit,
as there is finally some fear in the air. My internal
indicators are getting oversold, which should help to hold
things together. So, the market has reason to snap back and
put together a decent rally. If that occurs on Thursday, the
move shouldn't get past the 1408.50-1409.25 area on the SP
futures and 1990.25-1992.00 area on the Nasdaq futures if
it's a counter-trend move in a new downtrend.
On Thursday we could have a decent trade on the long side if
the market opens lower, near the Wednesday lows, and then
reverses back to the upside. If that occurs, don't fall in
love with the long side just yet as the first decent bounce
will likely be sold. The market has had reactions, if only
small, to most of the support and resistance areas during
this move so they should be watched for trade setups also.
The initial resistance is at the 1397.50-1398.25 area on the
SP futures and 1970.50-1972.25 area on the Nasdaq futures.
If those don't cause a problem, then the 1403.00-1403.50
area on the SP futures and 1978.50-1980.00 area on the
Nasdaq futures would be next. If the market doesn't reverse
from those areas, then the key resistance is at the 1408.50-
1409.25 area on the SP futures and 1990.25-1992.00 area on
the Nasdaq futures. If those are reached, and the move
fizzles and/or reverses, then the bears could take over
control again. If those areas are cleared, then we should
see strong resistance at the 1415.00 level on the SP futures
and 2004.75 level on the Nasdaq futures.
The initial support is at the 1388.50-1388.00 area on the SP
futures and 1955.00-1954.00 area on the Nasdaq futures. If
the market opens down there and then turns up, a decent
bounce could begin. However, if buyers don't step to the
plate at those areas, then we could go right to the 1382.25-
1381.50 area on the SP futures and 1948.00-1946.50 area on
the Nasdaq futures. If those do not hold, then things
probably get ugly again. The next support would be around
the 1377.00-1376.25 area on the SP futures and 1938.50-
1937.50 area on the Nasdaq futures. If those are broken,
then the next major support is at the 1372.50-1370.50 area
on the SP futures.
June 2008 SP futures resistance
symbols: emini = esm8 / big contract =spm8
1397.50-1398.25
1403.00-1403.50
1408.50-1409.25
1414.50-1415.00
June 2008 SP futures support
symbols: emini = esm8 / big contract =spm8
1388.50-1388.00
1382.25-1381.50
1377.00-1376.25
1372.50-1370.50
June 2008 Nasdaq futures resistance
symbols: emini = nqm8 / big contract = ndm8
1970.50-1972.25
1978.50-1980.00
1990.25-1992.00
2004.75
June 2008 Nasdaq futures support
symbols: emini = nqm8 / big contract = ndm8
1955.00-1954.00
1948.00-1946.50
1938.50-1937.50
June 2008 Dow futures resistance
symbols: emini = ymm8
12640-12644
12692-12698
12724-12731
12782
June 2008 Dow futures support
symbols: emini = ymm8
12573-12571
12512-12506
12474-12469
June 2008 Russell futures resistance
symbols: emini = er2m8 / big contract = er2m8
731.90-732.40
734.20-734.60
736.70-738.20
741.50
June 2008 Russell futures support
symbols: emini = er2m8 / big contract = er2m8
723.50-723.10
721.20-720.80
716.80-716.50
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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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