TradeStalker's
R.B.I. Trader's Update
5/28/2008
(Published Since 1996)
...............................................
Dateline: 7:03 pm eastern time, 5/28/2008
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The early game-plan was to short an early pop that
stalled/reversed, and then look to flip and get long on the
first decent pullback. It set up perfectly as the SP futures
reached 1390.00, right in the middle of the 1389.75-1390.25
resistance zone, and then sold off 1380.25. That short had a
9.75 point drop to the pivotal 1381.00-1380.25 zone before
reversing. Things were a bit tricky after that move, as the
market did a lot of pop and drop moves. The market put
together feeble looking bounce that reversed from 1386.25 on
the SP futures, and then sold off to new lows as the SP
futures reached 1377.75 and quickly turned back up. About 6
minutes before it occurred, I warned of a reversal from the
1386-1387 zone and the SP futures reached 1386.25 and turned
down. The market pulled back and broke the updated 1381.50-
1381.00 support, but the market turned right back up. The
reversal started a bounce back to the 1386.00 level on the
SP futures and they turned back down, but after a 2.75 point
pullback they turned back up and rallied back to the
1389.75-1390.25 zone. Off of a 1390.50 high, the SP futures
pulled back 4 points and then bounced back to the 1393.25
resistance before pulling back in the last minute of futures
trading.
On Thursday look for similar action to Wednesday. If there
is early strength, it should offer a good shorting
opportunity in the early going. If that plays out, the first
decent pullback that stalls/reverses, especially if it's at
a support zone, should set up a trade on the long side. If
that all works out in the first hour of trading, then the
reminder of the day could be more choppy upside, with a
chance of seeing the 1398.75-1399.50 area on the SP futures
and the 2014.50-2015.50 area on the Nasdaq futures. If the
market gets up there, and the rally stalls out and reverses,
it could begin a sizable drop. However, if both of those
zones are exceeded, and the market doesn't quickly reverse,
then we could see the SP futures rally for another day or
two, possibly getting to the 1414.50-1415.50 area on the SP
futures on this leg up. On the other side of the coin,
should the
market sell off to the Wednesday afternoon low areas and
those areas aren't defended, then a move back to test/ break
the 1373.00-1372.50 area on the SP futures could be in the
cards.
The initial resistance is at the 1393.00-1393.50 area on the
SP futures and 2006.50-2007.25 area on the Nasdaq futures.
If those Wednesday high areas are not quickly reversed, and
the market heads higher, then we could see the 1398.75-
1399.50 area on the SP futures and 2014.50-2015.50 area on
the Nasdaq futures. If those are reached, and the move
stalls/reverses, then we could have a pretty quick, sharp
drop. However, if the market gets up there and doesn't have
any reaction to the downside, then the there could be a push
towards the 1402.50-1403.00 area on the SP futures and
2022.25-2023.75 area on the Nasdaq futures.
The initial support is at the 1386.50-1386.00 area on the SP
futures and 1996.00-1995.25 area on the Nasdaq futures. If
the market can hold those areas on a pullback, then the
upside momentum will stay intact. However, if those are
broken, then the market will be back in the same ranges that
it spent a good deal of time trading in on Wednesday. A drop
to the 1382.75 level on the SP futures and 1990.50 level on
the Nasdaq futures would need to hold, or be quickly
reversed, to avoid a trip down to the 1377.75-1377.00 area
on the SP futures and 1983.25-1981.50 area on the Nasdaq
futures. If those areas do not hold, or quickly reversed,
then there should be pressure on the market and the 1373.00-
1372.50 area on the SP futures would need to hold to avoid
trouble.
June 2008 SP futures resistance
symbols: emini = esm8 / big contract =spm8
1393.00-1393.50
1398.75-1399.50
1402.50-1403.00
June 2008 SP futures support
symbols: emini = esm8 / big contract =spm8
1386.50-1386.00
1382.75
1377.75-1377.00
June 2008 Nasdaq futures resistance
symbols: emini = nqm8 / big contract = ndm8
2006.50-2007.25
2014.50-2015.50
2022.25-2023.75
June 2008 Nasdaq futures support
symbols: emini = nqm8 / big contract = ndm8
1996.00-1995.25
1990.50
1983.25-1981.50
June 2008 Dow futures resistance
symbols: emini = ymm8
12602-12606
12667-12673
12701-12705
June 2008 Dow futures support
symbols: emini = ymm8
12563-12559
12526
12496-12492
June 2008 Russell futures resistance
symbols: emini = er2m8 / big contract = er2m8
739.00-739.40
743.80-744.20
746.20-746.70
June 2008 Russell futures support
symbols: emini = er2m8 / big contract = er2m8
735.50-735.00
732.60
730.40-729.80
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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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