TradeStalker's
R.B.I. Trader's Update
5/22/2008
(Published Since 1996)
...............................................
Dateline: 6:26 pm eastern time, 5/22/2008
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We were looking for early weakness to set up a trade on the
long side, but were aware that the first decent bounce would
likely set up a shorting opportunity. The market opened
higher and then after a dip lower, the SP futures rallied to
1399.50 before stalling out. A little pullback was followed
by a bounce to a lower high, and then the market reversed
and the SP futures fell to a lower low at 1390.50 and
quickly reversed. They bounced back to the 1396.50 level,
but after a 3 point pullback the SP futures ran up to make a
double top at 1399.50. A quick dip and then a pop to a lower
high was reversed, and another 1-2-3 top formed and the SP
futures dropped to 1391.75 and then turned back up. The SP
futures bounced back to 1397.25 and the move fizzled and
then rolled over, sending the SP futures back to test the
low. The move held at the 1391.25 level and the market
firmed into the close.
Due to the Holiday, there will be no intraday updates on
Friday. The next update will be published on Monday night,
May 26th.
The averages traded back and forth as expected on Thursday,
as all of the averages made "inside days" by staying within
the Wednesday ranges. On Friday the action should be slow,
and maybe give more of the same back-and-forth action unless
there is a significant break of Thursday's double top and
double bottom on the SP futures. The VIX did a good job of
warning of a top early last week, and it gave one buy signal
on Thursday. The market is also still a bit oversold. Also,
the last time the market had narrow range days after a
sizable downdraft, the market took off and raced to new
highs for the leg up. Narrow range days often preclude
sizeable moves as the market takes a rest before getting
momentum either turned around or it reasserts itself.
On Friday look for opportunities in both directions. It will
take a break above or below the Thursday ranges, that isn't
quickly reversed, to get a potential directional move going.
Aside from that, the bears are still in control unless there
is a break and hold over the initial resistance zones.
Due to the Holiday, there will be no intraday updates on
Friday. The next update will be published on Monday night,
May 26th.
The initial resistance is at the 1399.00-1399.50 area on the
SP futures and the 1980.50-1981.50 area on the Nasdaq
futures. If those are not a problem, then the next hurdles
would be at the 1403.00-1403.50 area on the SP futures and
the 1984.00-1984.50 area on the Nasdaq futures. If the
market is making a fake-out breakout over the Thursday
highs, those zones shouldn't be exceeded. If they are
broken, then the key resistance is at the 1408.50-1409.25
area on the SP futures and the 1990.25-1992.00 area on the
Nasdaq futures. A rally to those areas that stalls out
/reverses would set up a very good reward / risk opportunity
on the short side.
The initial support is at the 1391.50-1390.50 area on the SP
futures and the 1958.75-1958.00 area on the Nasdaq futures.
If those are broken and not quickly reversed, then only the
1388.00 level on the SP futures and the 1954.00 level on the
Nasdaq futures can keep the market from having a bad day. If
those levels are not quickly reversed, then look for support
at the 1382.25-1381.50 area on the SP futures and the
1948.00-1946.50 area on the Nasdaq futures. If those break,
then there is minor support around the 1377.00-1376.25 area
on the SP futures and the 1938.50-1937.50 area on the Nasdaq
futures. If those are cut through, then major support is
near the 1372.00-1370.50 area on the SP futures.
Again, due to the Holiday, there will be no intraday updates
on Friday. The next update will be published on Monday
night, May 26th.
June 2008 SP futures resistance
symbols: emini = esm8 / big contract =spm8
1399.00-1399.50
1403.00-1403.50
1408.50-1409.25
June 2008 SP futures support
symbols: emini = esm8 / big contract =spm8
1391.50-1390.50
1388.00
1382.25-1381.50
1377.00-1376.25
1372.00-1370.50
June 2008 Nasdaq futures resistance
symbols: emini = nqm8 / big contract = ndm8
1980.50-1981.50
1984.00-1984.50
1990.25-1992.00
June 2008 Nasdaq futures support
symbols: emini = nqm8 / big contract = ndm8
1958.75-1958.00
1954.00
1948.00-1946.50
1938.50-1937.50
June 2008 Dow futures resistance
symbols: emini = ymm8
12669-12673
12701-12704
12775-12781
June 2008 Dow futures support
symbols: emini = ymm8
12595-12590
12571
12512-12506
12474-12469
June 2008 Russell futures resistance
symbols: emini = er2m8 / big contract = er2m8
736.60-736.90
738.20-738.60
741.10-741.40
June 2008 Russell futures support
symbols: emini = er2m8 / big contract = er2m8
729.20-728.80
725.10
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.
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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