TradeStalker's
R.B.I. Trader's Update
5/29/2008
(Published Since 1996)
...............................................
Dateline: 6:48 pm eastern time, 5/29/2008
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The early game-plan was the same as Wednesday, to short an
early pop that stalled/reversed, and then look to flip and
get long on the first decent pullback. After a lower open,
the market rallied for 20 minutes and stalled at our 1393.50
initial resistance. They pulled back 5 points to 1388.50 and
turned up. A quick up and back down move occurred, with the
ES making a double bottom at that 1388.50 level, and the
market shot higher. The 1398.75-1399.50 area was a key
resistance and the market paused there, but then it pushed
through that zone and rallied to 1407.00 on the SP futures.
The move was quickly reversed, and after breaking the 1402
level the market slid lower with the SP futures reaching
1397.00 before the close.
The SP futures reached the 50% retracement from the 1441
high to 1273 low and was hit with selling on Thursday.
Sentiment has come back to neutral, as have most of the
internal gauges. Friday is the last day of the month, and
that's about all that's keeping me from an all-out bearish
bias short term. It's possible that the market makes one
more run on the upside and reaches the 1414.50-1415.50 zone
by next Monday or Tuesday. However, given the action off
that 1407 level, don't hold your breath.
In any case, look for opportunities on both sides on Friday.
A rally back to the Thursday highs that reverses could set
up a decent shorting opportunity. On the other side of the
coin, if there is early weakness that then stalls/reverses,
it should set up a buying opportunity.
The initial resistance is at the 1400.50 level on the SP
futures and the 2029.00 level on the Nasdaq futures. If
those are broken and not quickly reversed, then the key
hurdles would be at the 1406.50-1407.00 area on the SP
futures and the 2033.00-2034.00 area on the Nasdaq futures.
If the market doesn't reverse from a test of those areas,
then we could see the 1414.50-1415.50 area on the SP futures
and the 2044.00-2046.00 area on the Nasdaq futures.
The initial support is at the 1394.00-1393.50 area on the SP
futures and the 2020.25-2019.75 area on the Nasdaq futures.
If those are reached, the market will bounce right away if
the market is strong. However, if those areas are broken,
then the 1388.50-1388.00 area on the SP futures and the
2012.50-2011.00 area on the Nasdaq futures will be key
support. If the market cannot hold those areas, especially
on a close, then a topping pattern is in place. The next
good support is at the 1381.00-1380.00 area on the SP
futures and the 2004.00-2002.50 area on the Nasdaq futures,
and if the market falls apart from up here, then the 1377.75
level on the SP futures and the 1996.00 level on the Nasdaq
futures will need to hold or else the SP futures could go
for that 1373.00-1372.50 zone again.
June 2008 SP futures resistance
symbols: emini = esm8 / big contract =spm8
1400.50
1406.50-1407.00
1414.50-1415.50
June 2008 SP futures support
symbols: emini = esm8 / big contract =spm8
1394.00-1393.50
1388.50-1388.00
1381.00-1380.00
1377.75
1373.00-1372.50
June 2008 Nasdaq futures resistance
symbols: emini = nqm8 / big contract = ndm8
2029.00
2033.00-2034.00
2044.00-2046.00
June 2008 Nasdaq futures support
symbols: emini = nqm8 / big contract = ndm8
2020.25-2019.75
2012.50-2011.00
2004.00-2002.50
1996.00
June 2008 Dow futures resistance
symbols: emini = ymm8
12661
12722-12726
12792-12798
June 2008 Dow futures support
symbols: emini = ymm8
12602-12598
12554-12549
12495-12490
12459
June 2008 Russell futures resistance
symbols: emini = er2m8 / big contract = er2m8
746.30
751.00-751.50
757.50-758.30
June 2008 Russell futures support
symbols: emini = er2m8 / big contract = er2m8
742.50-742.10
737.20-736.80
730.50-730.10
728.50
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Good Trading,
Mike Reed
Copyright (c) 2008 by TradeStalker.com, Ft Wayne, IN.
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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
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is substantial. You can lose more than your original
investment. We are not Registered Investment Advisors or
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